BRICS explores linking CBDCs and payment systems

BRICS is exploring linking payment systems and CBDCs to cut cross-border costs. Talks are early, with technical and regulatory hurdles and no final framework yet.

BRICS countries are in early talks to connect their fast payment systems and central bank digital currencies (CBDCs), aiming to lower the cost of cross-border transactions. Reserve Bank of India Governor Sanjay Malhotra confirmed the discussions, but no specific framework or timeline has been set yet. The initiative seeks to make international payments cheaper and more efficient by reducing intermediaries and enabling direct communication between national systems. India, set to host the 2026 BRICS summit, is especially keen to boost the use of the rupee and local currencies in global trade. However, technical, regulatory, and governance challenges persist. Trade imbalances and differences among BRICS members add further complexity. There are also concerns about increased state control and privacy risks with CBDCs. The talks are ongoing, with multiple options still under consideration.