New Delhi: India is likely to push for seamless cross-border payments using central bank digital currencies (CBDCs) within BRICS members during its presidency this year, people privy to the development said.”This will be part of the agenda for BRICS,” one of the people said.
BRICS is a 10-member bloc including Brazil, Russia, India, China and South Africa. India will hold the summit later this year.
The move is significant in view of the BRICS declaration at the 2025 summit on interoperability among members’ payment systems to make cross-border transactions easier.
The Reserve Bank of India is keen to push cross-border transactions in CBDCs.
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Full-fledged digital currencies are yet to be launched. Interoperability of CBDCs will also require aligning technology and addressing security concerns.
New Delhi had showcased the strength of its digital payments system such as the Unified Payment Interface and Bharat Bill Payment System for cross-border transactions as also its CBDC during its G20 presidency two years ago. It is expected to be at the central stage of the agenda for the BRICS presidency as well.Interoperable digital payment systems are expected to lend more efficiency and ease to cross-border transactions.
BRICS has toyed with the idea of a BRICS currency without much headway.
RBI governor Sanjay Malhotra had in Washington DC in November asked other central banks to use and promote CBDC instead of stable coins to facilitate international transactions. “Unless other countries also adopt CBDC, we are not going to see the benefits of CBDC in so far as cross-border payments are concerned,” he had said.