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Regulation Macro

India Favors Central Bank Digital Currencies for BRICS Payments

India will push BRICS members to expand the use of central bank digital currencies for cross-border payments but will not back a unified payment network that could be seen as challenging the dollar, people familiar with the matter said. As this year’s BRICS chair, India and Prime Minister Modi favor settling bilateral trade between member states in CBDCs. A single BRICS payment settlement system is unlikely to be agreed at this weekend’s leaders’ summit in New Delhi.

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AI take

India's preference for bilateral CBDC settlement over a unified BRICS network is a deliberate hedge: it captures efficiency gains in cross-border trade while avoiding any architecture that could be framed as a dollar-challenging bloc. That distinction matters for central banks and payment providers weighing CBDC interoperability, since bilateral corridors scale differently than a shared settlement layer. The open question is whether India's chair-year push yields concrete CBDC linkages among members or remains a statement of intent, and whether other BRICS states accept bilateralism as the ceiling rather than a stepping stone.

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