The BRICS countries are brewing a major move. According to reports, the Reserve Bank of India has proposed a plan to be discussed at the 2026 BRICS summit: to enable interconnection of central bank digital currencies (CBDCs) of Brazil, Russia, India, China, and South Africa.

This plan sounds very appealing. Once implemented, trade settlement and tourism payments among the five countries could see significant efficiency improvements, and transaction costs would drop markedly. More importantly, this would bypass the US dollar intermediary—despite the US warning BRICS countries not to pursue this, they have already started planning, rendering the threat largely ineffective.

Frankly, from a technical perspective, this is not simple. The promotion of CBDCs within each country has faced challenges, with some places even seeing a larger market for stablecoins. The financial systems of these countries differ greatly, and real implementation would encounter a host of complex issues. Essentially, India’s proposal aims to enhance the international status of the rupee, but due to practical difficulties, breakthroughs are unlikely in the short term.

However, the focus is not on technical feasibility but on the signals behind it. The global fear of the US is indeed waning, and countries are seeking alternative paths. Relying solely on the US dollar system is clearly not viable; instead, it’s better to explore regional economic cooperation together. While CBDC projects may not succeed, the dialogue itself is valuable. BRICS trade cooperation is accelerating and will eventually extend into the financial realm—this is the trend.