International

BRICS explores cross-border payment links and digital currencies

Yesterday 17:33

By: Azzat Manal

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The BRICS group is examining ways to improve cross-border payments by potentially linking fast payment systems and central bank digital currencies among its member states, according to Reserve Bank of India Governor Sanjay Malhotra.

Speaking at an event in Mumbai, Malhotra said that reducing the cost and complexity of international payments remains an important priority for BRICS economies. Several options are reportedly being considered, including interoperability between national fast-payment networks and possible connections involving central bank digital currencies (CBDCs).

The discussions are still at an early stage, and no final framework has been adopted. However, greater compatibility between national payment infrastructures could make cross-border transactions faster, cheaper and more accessible, particularly for trade conducted in local currencies.

India is also continuing efforts to internationalize the rupee and encourage the use of national currencies in international trade and payments. Such initiatives are part of a broader BRICS effort to strengthen financial cooperation and reduce dependence on traditional international payment channels.

Malhotra also highlighted the growing role of artificial intelligence in the banking sector. Rather than treating AI solely as a potential risk, he argued that financial institutions should develop the capacity to use the technology responsibly. He called on Indian banks to identify the AI systems they employ and establish governance frameworks approved by their boards.

The discussion over digital currencies has gained importance within BRICS as several central banks around the world explore CBDCs as a potential tool for modernizing payment systems. Interoperability between such currencies could eventually facilitate international transactions while reducing reliance on conventional intermediaries.

BRICS, originally established by Brazil, Russia, India and China in 2006 before South Africa joined in 2011, has expanded significantly in recent years. The group has increasingly focused on financial cooperation, local-currency trade and the development of alternative payment mechanisms.

India, which holds the BRICS presidency in 2026, is expected to play an important role in advancing discussions on payment connectivity. Any future system, however, would require agreement among participating countries on technical standards, regulation, cybersecurity and financial oversight.

For emerging economies, the potential integration of fast-payment systems and digital currencies could represent a significant step toward more efficient international financial transactions. The initiative also reflects the broader effort within BRICS to strengthen economic ties while giving member states greater flexibility in conducting cross-border trade.