https://sputniknews.in/20260811/brics-nations-unite-digital-currencies-global-trade-will-never-be-the-same-11924471.html
BRICS Nations Unite Digital Currencies: Global Trade Will Never Be the Same
BRICS Nations Unite Digital Currencies: Global Trade Will Never Be the Same
Sputnik India
BRICS countries are exploring the possibility of integrating their national fast payment systems with central bank digital currencies, said Reserve Bank of... 11.08.2026, Sputnik India
2026-08-11T21:51+0530
2026-08-11T21:51+0530
2026-08-11T21:51+0530
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The remarks by Sanjay Malhotra on the possibility of linking fast payment systems with central bank digital currencies (CBDCs) are a crucial and practical step towards modernising cross-border payment systems, an expert has said.The benefits of potential trade focus on efficiency for trade on a global scale. Today, cross-border transactions are likely to involve several intermediaries, and high fees and settlement times can take several days, he added.Enabling near-instant settlement, cost reduction (particularly for retail remittances, tourism and SME trade) and transparency would be possible if fast payment rails are built on top of CBDCs. If fast payment rails are built on top of CBDCs, then near-instant settlement, lower costs (particularly for retail remittances and for tourism and SME trade) and greater transparency would be possible, the pundit stated.In the long term, this can increase the share of transactions between BRICS and Global South countries that settle outside the dollar, fostering a more diversified and multipolar payment system while preserving national monetary sovereignty, the analyst highlighted.Meanwhile, Dr Lekha S. Chakraborty, a senior economist at the National Institute of Public Finance and Policy (NIPFP) in New Delhi, believes that the exploration by BRICS countries of linking their national fast payment systems with CBDCs is a pragmatic and timely step.Cross-border payments remain unnecessarily slow and expensive for many emerging-economy market businesses and individuals. Now the significant 'use case' of crypto is cross-border transactions, which highlights the need for a safe legal tender-based cross-border transactions than depending on crypto, which is not an authorised digital legal tender, she stressed.The dollar's dominance rests on deep capital markets, liquidity and network effects that no single payment linkage will quickly overturn, the financial commentator underlined.Success will depend on solving practical issues: technical standards, settlement of trade imbalances, regulatory alignment and risk management. If executed well, the initiative can deliver real economic benefits with cheaper and quicker payments, while enhancing monetary resilience. It is evolutionary progress, and this is a welcome step, she concluded.
https://sputniknews.in/20260810/brazil-draws-a-line-in-the-sand-brics-and-global-south-become-its-shield-against-us-pressure-11905926.html
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BRICS Nations Unite Digital Currencies: Global Trade Will Never Be the Same
BRICS countries are exploring the possibility of integrating their national fast payment systems with central bank digital currencies, said Reserve Bank of India Governor Sanjay Malhotra on Tuesday.
The remarks by Sanjay Malhotra on the possibility of linking fast payment systems with central bank digital currencies (CBDCs) are a crucial and practical step towards modernising cross-border payment systems, an expert has said.
"These talks are in their nascent stage and are intended to lower the high transaction costs and time required for the traditional correspondent banking system and the SWIFT financial system by aligning payment methods like the UPI of India, Pix of Brazil and interoperable CBDCs," Dr Pavan Chaurasia, an academic at Delhi University's Shivaji College and a visiting fellow at the geopolitical think tank India Foundation, told Sputnik India.
The benefits of potential trade focus on efficiency for trade on a global scale. Today, cross-border transactions are likely to involve several intermediaries, and high fees and settlement times can take several days, he added.
Enabling near-instant settlement, cost reduction (particularly for retail remittances, tourism and SME trade) and transparency would be possible if fast payment
rails are built on top of CBDCs. If fast payment rails are built on top of CBDCs, then near-instant settlement, lower costs (particularly for retail remittances and for tourism and SME trade) and greater transparency would be possible, the pundit stated.
"This would greatly facilitate intra-BRICS trade, which has expanded as the number of members has increased. Local currency payments or CBDCs would eliminate the need for multiple foreign exchange intermediaries, mitigate foreign exchange risks and bolster supply-chain resiliency to geopolitical shocks," Chaurasia underscored.
In the long term, this can increase the share of transactions between BRICS and Global South countries that settle outside the dollar, fostering a more diversified and multipolar payment system while preserving national monetary sovereignty, the analyst highlighted.
Meanwhile, Dr Lekha S. Chakraborty, a senior economist at the National Institute of Public Finance and Policy (NIPFP) in New Delhi, believes that the exploration by BRICS countries of linking their national fast payment systems with CBDCs is a pragmatic and timely step.
Cross-border payments remain unnecessarily slow and expensive for many emerging-economy market businesses and individuals. Now the significant 'use case' of crypto is cross-border transactions, which highlights the need for a safe legal tender-based cross-border transactions than depending on crypto, which is not an authorised digital legal tender, she stressed.
"Connecting systems such as UPI, PIX and others, alongside interoperable CBDCs, could deliver faster settlement, lower costs and greater use of local currencies in intra-BRICS trade and remittances. This would strengthen trade efficiency within the bloc and reduce reliance on intermediary currencies for those specific flows. It represents functional de-dollarisation in targeted corridors rather than an attempt to dismantle the dollar’s global role overnight," Chakraborty said in an interview with Sputnik India.
The dollar's dominance rests on deep capital markets, liquidity and network effects that no single payment linkage will quickly overturn, the financial commentator underlined.
Success will depend on solving practical issues: technical standards, settlement of trade imbalances,
regulatory alignment and risk management. If executed well, the initiative can deliver real economic benefits with cheaper and quicker payments, while enhancing monetary resilience. It is evolutionary progress, and this is a welcome step, she concluded.
