BRICS is considering linking central bank digital currencies to streamline cross-border payments and tourism transactions, with a formal consideration expected at the 2026 BRICS summit in Brazil, as part of broader aims to reduce reliance on the U.S. dollar.

The move would build on a 2025 BRICS declaration calling for more efficient cross-border transactions and aligns with India’s push to expand rupee use, while explicitly not pursuing de-dollarisation.

If endorsed by India and BRICS partners, this would mark BRICS’s first formal look at CBDC interoperability, though progress remains in early stages and depends on technology, governance, and settlement arrangements.

Experts caution that technical and political hurdles exist, including incomplete CBDC launches across BRICS, interoperability challenges, governance and data-sharing concerns, and trust issues within the bloc.

The initiative sits within broader geopolitical tensions and U.S. concerns about bypassing the dollar, with past rhetoric about BRICS as “anti-American” shaping the context.

Analysts say progress hinges on consensus on technology and regulatory frameworks, with some proposals favoring periodic settlements via swaps and a phased, pilot-based rollout.

Historical attempts at promoting trade in local currencies between Russia and India faced challenges from currency imbalances and regulatory hurdles, informing current caution.

Overall, the initiative signals a gradual move toward modular, state-controlled digital payment networks that could shift the geopolitical landscape without dethroning the dollar, contingent on implementation and perception.

Key topics for linking BRICS CBDCs include interoperable technology, governance rules, and settlement mechanisms to address trade imbalances and concerns about using foreign tech platforms, requiring regulatory consensus.

Potential use of bilateral FX swap arrangements between central banks is discussed as a way to manage trade imbalances within a linked BRICS CBDC framework.

Historical context shows past hurdles in using local currencies for BRICS trade, with a previous push for a common BRICS currency not progressing; focus remains on CBDCs and payment interoperability.

BRICS officials have repeatedly stated they are not seeking a US dollar alternative or a common BRICS currency; any CBDC interoperability would aim at settlement efficiency, not replacing the dollar.