India is pushing for a digital currency network linking BRICS economies, a move that could give African members South Africa, Egypt and Ethiopia a new route for cross-border payments and trade.
India wants BRICS digital currencies linked as South Africa, Egypt and Ethiopia join payment push
- India has proposed creating a digital currency network linking BRICS countries to enhance cross-border payments and trade.
- This initiative would allow member states to use their own digital currencies for international transactions.
- African BRICS members – South Africa, Egypt, and Ethiopia could benefit from reduced friction in cross-border trade and fewer currency conversions.
- The proposed network is part of broader BRICS efforts to increase financial cooperation and improve interoperability of payment systems.
The proposal by India’s Reserve Bank would link the official central bank digital currencies of BRICS members, allowing them to be used more easily for international transactions.
The plan is expected to feature at the BRICS leaders’ summit in New Delhi on September 12 and 13
For Africa, the proposal is significant because three of the continent’s major economies are now part of the expanded BRICS grouping alongside Brazil, Russia, India, China, Indonesia, Iran, Saudi Arabia and the UAE.
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A functioning BRICS payment network could eventually reduce some of the friction African businesses face when trading across borders, particularly where transactions currently require multiple currency conversions and conventional international payment infrastructure.
The proposed network is part of broader BRICS efforts to increase financial cooperation and improve interoperability of payment systems. [X, formerly Twitter/Danny Haiphong]BRICS Nations. [X, formerly Twitter/Danny Haiphong]BI Africa
South Africa, Egypt and Ethiopia could potentially use their own digital currencies within an interoperable system rather than creating a new BRICS currency. Reuters reported that India’s objective is to make international payments faster and easier, rather than replace the US dollar.
The proposal builds on the 2025 BRICS declaration in Rio de Janeiro, which called for greater interoperability between members’ payment systems to improve cross-border transactions.
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The initiative also fits into a broader BRICS push for financial cooperation. Global Times reported that cross-border digital payments and local-currency settlement are expected to be major areas of focus at the New Delhi summit, alongside expansion of the New Development Bank and reforms to multilateral financial institutions.
For African economies, the potential benefits could extend beyond BRICS members if payment infrastructure developed by the bloc eventually connects with wider African systems. That could complement existing efforts to make intra-African trade cheaper and more efficient.
However, the proposal faces major obstacles.
Reuters reported that previous BRICS discussions on shared payment mechanisms have made limited progress. Political tensions between members, India’s reluctance to deepen financial connectivity with China and the need for currency-swap arrangements to manage trade imbalances could all slow implementation.
The result is a potentially significant opportunity for Africa, but one that remains at the proposal stage rather than an operational alternative to existing global payment networks.
