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BRICS nations discuss linking payment systems, CBDCs

Created at 11 Aug · 7:22 AM1 source↑ Market-relevant
IN SHORT

BRICS nations are exploring potential links between their fast payment systems and central bank digital currencies (CBDCs) to reduce cross-border payment costs, according to Reserve Bank of India Governor Sanjay Malhotra. The discussions are ongoing, with various options on the table.

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Key Numbers

2026year India is hosting BRICS summit

Who's Involved

Sanjay Malhotra
Reserve Bank of India Governor
BRICS
Group of nations discussing payment system linkages
RBI
Reserve Bank of India
BRICS nations discuss linking payment systems, CBDCs

↳ Why This Matters

The discussions among BRICS nations signal a potential shift towards greater integration of digital currencies and payment systems, which could reduce transaction costs and challenge the dominance of traditional cross-border payment mechanisms.

Key facts

  • BRICS nations are discussing linking their fast payment systems and central bank digital currencies.
  • The goal is to reduce the cost of cross-border payments.
  • The Reserve Bank of India Governor, Sanjay Malhotra, made these remarks.
  • The RBI is also working to internationalize the rupee and promote local currency use for trade.
  • The RBI views artificial intelligence as a capability to be harnessed by Indian banks.

BRICS member nations are actively discussing the potential for linking their respective fast payment systems and central bank digital currencies (CBDCs), according to Reserve Bank of India (RBI) Governor Sanjay Malhotra. Speaking at an event in Mumbai, Malhotra highlighted that reducing the cost of cross-border payments is a significant area of interest for the group.

Malhotra stated that while various options are under consideration, the discussions are still in their early stages. He confirmed that both CBDCs and the interconnection of fast payment systems are among the possibilities being explored. Earlier this year, Reuters reported that the RBI had proposed to the government that connecting CBDCs be placed on the agenda for the 2026 BRICS summit, which India is set to host.

In addition to these discussions, Malhotra reiterated the RBI's ongoing commitment to internationalizing the Indian rupee and encouraging the use of local currencies for international trade and payments. He also addressed the topic of artificial intelligence, characterizing it as a capability to be harnessed rather than solely a risk. Malhotra urged Indian banks to embrace AI, emphasizing the need for them to inventory their AI models and establish board-approved governance policies to ensure both innovation and safety in the financial system.

Frequently asked questions

The BRICS organization includes Brazil, Russia, India, China, and South Africa, among others. India is hosting the 2026 summit.

The primary goal is to reduce the cost of cross-border payments.

The RBI views artificial intelligence as a capability to be harnessed and urges Indian banks to adopt AI governance policies, emphasizing that innovation and safety are complementary.

What Happens Next

01Further discussions on linking BRICS payment systems and CBDCs.
02Continued efforts by the RBI to promote the internationalization of the rupee.
03Indian banks to establish board-approved AI governance policies.

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How It Developed

BRICS nations are discussing linking their fast payment systems and central bank digital currencies.
Reserve Bank of India Governor Sanjay Malhotra stated that reducing cross-border payment costs is a key interest for the BRICS group.
Malhotra indicated that various options are being considered, including CBDCs and fast payment system linkages.
The RBI had previously recommended including a proposal to connect CBDCs on the BRICS summit agenda.
The RBI will continue efforts to internationalize the rupee and promote local currency use in cross-border trade.
Malhotra also commented on the RBI's view of artificial intelligence as a capability to be harnessed, urging Indian banks to adopt AI governance policies.

Sources

T1
BRICS nations discuss linking payment systems and CBDCs, RBI chief saysReuters

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