Key Notes
- According to two sources, India’s central bank wants BRICS nations to unify their CBDCs.
- The goal is to reduce reliance on the United States dollar.
- President Donald Trump has previously threatened tariff sanctions, a move that could be revived if this proposal passes.
Two sources have reported that India has published a proposal for countries under the BRICS bloc to link their Central Bank Digital Currencies (CBDCs). The central bank of the Asian giant strongly believes that this move will facilitate cross-border trade and tourism payments. Ultimately, this is perceived as a potential solution to reduce reliance on the United States dollar (USD).
CBDC on Agenda as India Eyes BRICS 2026 Summit
Geopolitical tensions are rising across several regions, and the Reserve Bank of India (RBI) thinks this is the best time for BRICS countries, including Brazil, Russia, India, China, and South Africa, among others, to link their official digital currencies.
According to a Reuters report, it has now requested that a proposal supporting this motion be added to the agenda for the 2026 BRICS summit. The sources have no authorization to speak publicly, so they requested anonymity. The summit is scheduled to be held later this year, and India will be the host.
Should the concerned parties accept the recommendation, a proposal to link the digital currencies of BRICS members would be put forward for the first time. It is no longer news that such a proposal could irk the US government.
For the longest time, the US has fought against any effort to challenge the dominance of the USD.
Trump Threatens to Punish BRICS Countries
US President Donald Trump once threatened to levy a 10% tariff on imports from members of the BRICS group of developing nations. He went as far as saying the group would end very quickly if they ever formed drastic monetary shifts.
“When I heard about this group from BRICS, six countries, basically, I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly,” Trump said while he avoided mentioning the countries. “We can never let anyone play games with us.”
Notably, the BRICS countries have been trying different approaches to de-dollarize their economies and reduce their reliance on the dollar for trade settlements.
Back in 2024, the bloc announced the creation of a blockchain-based payment system. The payment system served as an independent system for trade settlements, with the aim of boycotting the US dollar.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
