BRICS Digital Currency Connectivity System Initiative: Alternative Cross-Border Payment Strategy

SorryRugPulled · 2026-02-12T23:16:20+00:00

India, as the current BRICS chair, proposes a digital currency connectivity system to facilitate direct transactions among member nations via blockchain, enhancing efficiency and reducing reliance on the US dollar while maintaining monetary autonomy. The initiative aims to develop a secure, decentralized payment platform overseen by central banks, ensuring transparency and financial sovereignty.

SorryRugPulled

2026-02-12 23:16:20

Abstract generation in progress

As the current chair of BRICS, India has launched an ambitious proposal to build a digital currency connectivity system that links all member countries. According to BlockBeats, this strategic initiative is designed to create blockchain-based cross-border payment infrastructure, enabling BRICS nations to conduct direct transactions without relying on the US dollar as an intermediary.

India’s Proposal for the BRICS Digital Payment Ecosystem

It is important to understand that this BRICS digital currency initiative is not about creating a new single currency to replace each country’s local currency. Instead, the main focus is on developing an interconnection platform or practical payment corridor that facilitates efficient value exchange between countries. This approach allows each nation to maintain monetary sovereignty while benefiting from an integrated and transparent payment system.

Decentralized Blockchain Architecture and the Role of Central Banks

This connectivity system is planned to adopt a consortium or permissioned blockchain architecture, as opposed to fully open public blockchains. In this model, the central banks of each BRICS country will act as the main validation nodes, responsible for verifying and recording every transaction in a distributed ledger. This structure ensures the system remains secure, transparent, and simultaneously preserves each country’s financial sovereignty.

Strategic Benefits of the Connectivity System for BRICS Countries

By implementing this digital currency connectivity system, BRICS nations can significantly improve cross-border transaction settlement efficiency, reduce intermediary costs, and accelerate payment processing times. Additionally, the system provides full transparency for each transaction while maintaining data integrity through blockchain encryption. Ultimately, this initiative reflects BRICS’ commitment to building an independent and sustainable financial alternative in the digital economy era.

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.