India highlights its vision of a common digital currency for the BRICS, in the face of pressure from Washington

Under the impetus of Indian leaders, the Reserve Bank of India (RBI) is pushing an initiative to interconnect the central bank digital currencies (CBDCs) of the BRICS countries. The proposal comes amid rising trade tensions between New Delhi and Washington, where U.S. protectionist policies are weakening Indian exporters. The RBI has urged the government to put this ambitious project on the agenda of the BRICS 2026 summit that India is set to host.

Geopolitical origins: a response to US trade pressures

The geopolitical context largely explains this acceleration. Trade tensions between the United States and India have escalated, especially after the imposition of substantial tariffs on Indian imports. Among the sectors hit are textiles, gems and chemicals, where Indian exporters are suffering considerable losses. Indian Prime Minister Narendra Modi, in the face of these pressures, is seeking to strengthen economic ties within the BRICS bloc rather than unilaterally depending on Western markets.

Washington, for its part, has made clear its opposition to any attempt to diminish the role of the US dollar as the world’s reserve currency. The US president has even threatened to impose draconian tariffs (100%) against initiatives to circumvent the dollar.

A CBDC Interconnection Project to Strengthen Regional Trade

The initiative proposed by the RBI aims to create an interconnected system of digital currencies connecting the CBDCs of Brazil, Russia, India, China, South Africa, as well as new members like the United Arab Emirates, Iran, and Indonesia. This network would greatly facilitate cross-border trade and tourism exchanges between these nations, while gradually reducing their dependence on the U.S. dollar.

This would be the first formal attempt to create such an interconnection within the bloc. Indian officials see the move as a way to strengthen the group’s economic autonomy in the face of external pressures.

The state of CBDC deployment: a maturing ecosystem

Although no member of the BRICS has fully deployed its digital currency on a large scale, all major players have launched pilot programs.

India, under the leadership of the RBI, introduced the e-rupee in December 2022. This initiative quickly attracted around 7 million retail users, thanks to mechanisms that encourage adoption such as offline payments and programmable subsidies. The Indian central bank continues to expand fintech portfolios to increase penetration.

China, for its part, has promised to expand the digital yuan beyond its borders and plans to allow commercial banks to offer interest on digital yuan holdings, boosting its attractiveness.

Geopolitical implications and challenges to overcome

This proposal would upset the current global monetary balances, which explains the hostility displayed by Washington. The United States considers any attempt to reduce the weight of the dollar as a direct threat to its economic stability and global influence.

Nevertheless, the success of this initiative will depend on several critical factors: the technical ability to interconnect the different systems, the agreement of the participating governments, and above all the political will to persevere despite the risks of trade retaliation from the United States. The Indian prime minister and his counterparts must navigate a precarious balance between economic autonomy and commercial pragmatism.

The current period will be decisive in determining whether the BRICS countries will succeed in turning this vision into a tangible reality by the 2026 summit.