coinedition.com
India is strengthening its efforts to bring its native currency, the rupee, to the global financial market. As BRICS countries explore ways to connect their modern payment systems and CBDCs, India is looking to increase the use of the rupee in cross-border transactions.
Notably, India is expected to host the 2026 BRICS summit. The country will play a major role in discussions around digital payments and CBDC integration. As the Indian government is increasingly taking initiatives to expand the country’s digital payment ecosystem, this development is slated to bring massive changes.
India To Bring Rupee in Global Digital Payments
The latest Reuters report revealed India’s vision of increasing the use of the rupee in international trade and cross-border payments. RBI Governor Sanjay Malhotra stated that the government is working on internationalizing the rupee. The country also continues to promote the use of local currencies for international trade, which would ultimately result in de-dollarization.
“Cross-border payments is an area of interest for all of us, including the BRICS, because we feel there is a lot of scope for reducing cost,” stated the RBI Governor. Malhotra meant that the BRICS countries see significant scope for lowering the cost of cross-border payments.
BRICS Seeks to Link Global CBDCs and Payment Systems
As the BRICS countries are preparing for the 2026 summit, they are planning to connect their fast payment systems and central bank digital currencies (CBDCs). They intend to make cross-border payments easier and more efficient, reducing the costs involved.
One of the most important agendas of the BRICS nations is de-dollarization. As the US dollar still holds a dominant power in the global financial system, countries like Brazil, Russia, India, China, and South Africa are attempting to reduce its significance. Now, most countries largely depend on the USD for international trade. So, by incorporating local currencies, BRICS aims to reduce the reliance on the dollar.
However, Malhotra noted that the discussions are still at an early stage. The countries are exploring several ways to make their vision successful. “Various options are on the table, but it is still at discussion stage, including CBDCs (central bank digital currencies) and linkages of fast payment systems,” added the RBI chief.
Rupee Slips as Crude Oil Price Surges
India’s comments on the international role of the rupee come at a crucial time. Over the past few weeks, the rupee has been facing significant pressure, hitting record lows, as CoinEdition reported.
On Tuesday, the Indian rupee fell 13 paise to close at ₹95.43 against the USD. This decline comes in response to surging crude oil prices and rising geopolitical tensions. The oil price rose to nearly $90, up 2.5%, pushing the Indian rupee down. Research analyst Mirae Asset ShareKhan noted, “The rupee declined on a surge in crude oil prices and rising U.S. Treasury yields. Uncertainty over the deal between the U.S. and Iran also weighed on the rupee.”
Related: India Moves Toward Broader Crypto Regulation Beyond Tax Rules