The Central Bank of India promotes the connection of BRICS digital currencies at the 2026 summit amid tensions over the dollar

Source: Yellow Original Title: India’s Central Bank Promotes BRICS Digital Currency Connection at 2026 Summit Amid Dollar Tensions

Original Link: India’s central bank has recommended linking the (CBDC) of BRICS nations for cross-border payments, a move that could reduce dependence on the dollar but also risks increasing tensions with Washington.

The Reserve Bank of India has urged the government to add the proposal to the agenda of the 2026 BRICS summit, which India will host later this year, according to two sources cited by Reuters.

If approved, the initiative would mark the first formal attempt to connect the CBDCs among BRICS members: Brazil, Russia, India, China, South Africa, and the more recent additions, including the United Arab Emirates, Iran, and Indonesia.

What happened

The RBI’s proposal is based on the declaration from the 2025 BRICS summit in Rio de Janeiro, which supported greater interoperability of payment systems among member countries.

India’s e-rupee has attracted 7 million retail users since its launch in December 2022, while China has committed to promoting the international use of the digital yuan.

None of the BRICS members have fully launched retail CBDCs, as the five core nations continue to run pilot programs.

Why it matters

President Trump has repeatedly threatened to impose 100% tariffs on BRICS countries if they create an alternative currency to the dollar, labeling the bloc as <> and warning against attempts to undermine the greenback’s dominance.

The timing adds complexity to the already tense US-India relations following Trump’s decision in August 2025 to impose 50% tariffs on Indian goods — the highest rate for any country — including a 25% levy specifically targeting India’s Russian oil purchases.

Trade negotiations between Washington and New Delhi broke down after Prime Minister Modi refused to call Trump to finalize an agreement, according to US Commerce Secretary Howard Lutnick, though India denied this as <>.

RBI Deputy Governor T. Rabi Sankar stated last month that CBDCs <>, citing concerns over monetary stability and regulatory control amid the growing global use of stablecoins.