India promotes the overhaul of the international settlement system through cross-border use of digital rupees

2026-02-14 03:00:57

Abstract generation in progress

India is accelerating its ambitious efforts to improve the efficiency of the international payment system. Progress is being made in establishing a cross-border payment framework utilizing the e-Rupee issued by the Reserve Bank of India, which is attracting attention for its potential to fundamentally resolve traditional issues in international remittances. The strategy aims to significantly expand the global influence of the Rupee while reducing payment costs and improving settlement speeds.

Dramatic Reduction of Trade Costs through Rupee Internationalization

Currently, the international settlement system requires a multi-layered process involving several intermediary institutions, resulting in high fees and time consumption. India’s promotion of cross-border use of the digital Rupee aims to fundamentally improve this inefficient structure. Using the e-Rupee enables direct cross-border settlements, which are expected to greatly reduce intermediary costs. This is particularly promising for trade settlements, international remittances, and tourism-related payments, where faster settlement times and increased transparency are anticipated.

CBDC Integration Framework through Collaboration with BRICS Countries

India is advancing a plan to link the central bank digital currencies (CBDCs) of BRICS member countries with the e-Rupee. If realized, this framework would establish an interoperable payment network utilizing blockchain technology, accelerating regional economic integration. Developing a payment infrastructure centered around the digital Rupee is expected to increase trade volume among BRICS nations and strengthen economic ties.

Regulatory Solutions to Reduce Dependence on Private Stablecoins

Existing privately issued stablecoins pose concerns regarding monetary and systemic risks. The government-issued digital Rupee is positioned as a regulatory alternative to address these issues. As a centrally issued digital currency by the central bank, it guarantees safety and reliability. This helps fill regulatory gaps in the cryptocurrency market, contributing to consumer protection and financial stability.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.