RBI promotes the creation of a new BRICS digital currency by 2026

The Reserve Bank of India (RBI) is leading an ambitious initiative to establish a BRICS digital currency system that strengthens trade ties among the major emerging economies. The proposal aims to consolidate a new exchange model that significantly reduces dependence on the US dollar, marking a strategic shift in international economic relations.

A New Digital Currency Architecture for BRICS

According to sources close to Reuters, the RBI has formally urged the Indian government to include in the agenda of the 2026 BRICS summit an ambitious plan to interconnect the digital currencies of the central banks of all member nations. This innovative new BRICS currency system focuses on three main objectives: accelerating cross-border trade, boosting tourism among members, and structurally undermining the hegemonic dominance of the dollar in international transactions.

It would be the first documented formal effort to create a coordinated CBDC link between Brazil, Russia, India, China, South Africa, the United Arab Emirates, Iran, and Indonesia. The initiative represents a geopolitical turning point that could reshape global financial flows.

Progress of Each BRICS Nation in Digital Currency

Although none of the BRICS members have fully implemented their CBDC, all have made significant progress in pilot programs. India leads the way with its e-rupee, launched in December 2022, which has attracted 7 million retail users. The central bank actively promotes adoption through offline payments, programmable subsidies, and partnerships with fintech platforms.

China, for its part, has demonstrated a more expansive commitment to the digital yuan, seeking to position it as an international payment tool. It is expected that the Asian giant will allow commercial banks to offer interest on digital yuan holdings, a move that would facilitate greater global adoption.

US Trade Tensions Frame the Proposal

The BRICS initiative emerges in a context of increasing trade frictions between Washington and India under the Trump administration. The US president has issued explicit warnings to BRICS members, threatening punitive tariffs of 100% against any attempt to replace the dollar as the global reference currency.

Bilateral trade negotiations between the United States and India have stalled, particularly after recent disagreements. The 50% tariffs imposed on Indian imports, including a 25% specific tariff on Russian crude oil, have negatively impacted Indian exporters in textiles, gems, and chemicals sectors. This context of trade friction provides a backdrop for India to push for monetary alternatives within the BRICS bloc.

Cryptocurrencies Consolidate Amid Macro Volatility

In crypto markets, Bitcoin remained near $88,250 following the Federal Reserve’s decision to keep interest rates unchanged. The bullish sentiment was moderated by the strength of the US dollar and the rally in commodities such as gold at all-time highs, silver, and copper at elevated levels.

Ethereum fell 1.91% in 24 hours, while Solana declined 3.01%, BNB retreated just 0.06%, and Dogecoin lost 2.67%. Analysts warn that Bitcoin behaves more like a high-volatility risk asset than a macro hedge, trapped in a consolidation approximately 30% below its all-time high of October, holding key levels at $89,000.