At the 2026 BRICS summit in India, countries in the group discussed the possibility of linking their domestic fast payment systems and central bank digital currencies, or CBDCs. Reserve Bank of India Governor Sanjay Malhotra said the discussions were still at an early stage, but that several options were being considered to make cross border payments faster and cheaper. India had already pushed for CBDC links to be placed on the BRICS agenda earlier in the year.
The idea is important because BRICS members already have some of the world’s most advanced domestic payment systems. India has the Unified Payments Interface, or UPI, Brazil has Pix and China has developed the digital renminbi alongside its wider payments infrastructure. Russia and other BRICS members are also developing their own digital payment tools. Connecting these systems could allow money to move between countries more directly instead of relying on several banks and payment providers.
This does not mean that BRICS is about to replace the global payment system. The proposal is still being discussed and there are major technical, legal and policy questions to solve. However, it shows how fast domestic payment systems are becoming part of the wider debate about the future of international payments.
Why traditional cross border payments remain difficult
Domestic payments have become much faster in many countries. In more than 70 countries, instant payment systems can move money within seconds and at very low cost. Cross border payments, however, remain slower and more expensive because a transaction may have to pass through several financial institutions, deal with different rules and currencies, and go through foreign exchange and settlement processes. The Bank for International Settlements has identified limited interoperability between payment systems as one of the main problems holding back better cross border payments.
Correspondent banking is an important part of this system. A bank in one country may use another bank in a different country to make a payment when it does not have a direct relationship with the receiving bank. This system has supported international trade for decades, but it can add cost, time and complexity to a transaction.
For a company making a large international payment, these extra steps may be manageable. For smaller businesses, migrant workers and consumers making frequent lower-value payments, they can be much more noticeable. A more direct connection between national payment systems could reduce some of these costs by allowing payments to move through connected digital rails.
How a BRICS payment corridor could work
The simplest model would be to connect existing fast payment systems. A customer could use a domestic payment application in one BRICS country while the receiving party uses its own national payment system. The systems would need a common way to identify the payment, exchange currencies and settle the transaction.
This approach would not require BRICS to build one completely new payment system. Instead, it could create a common connection between existing systems. The BIS’s Project Nexus provides an example of this type of model. It is designed to create a standard way for instant payment systems in different countries to connect, rather than requiring every country to build a separate connection with every other country. The BIS says such connections could allow cross border payments to reach the recipient within 60 seconds in most cases.
CBDCs could take this idea further. A CBDC is digital money issued by a central bank. If two or more CBDCs could work together, a payment might be settled more directly between participating systems. The BIS’s Project Rialto has explored how instant payment systems could be combined with tokenised central bank money and an automated foreign exchange layer. Its proof of concept showed how a transaction between two jurisdictions could be completed through a direct digital process.
For BRICS, the attraction is clear. India has been developing the e-rupee, China has its digital renminbi and other members are also working on CBDC projects. A linked system could allow these national currencies to be used in cross border transactions without first converting everything into a common currency.
The possible benefits
The first major benefit would be lower costs. Cross border payments often involve several stages, including payment messaging, correspondent banking, foreign exchange and settlement. Connecting fast payment systems could remove some of these steps. The BIS has found that cross border payments continue to lag domestic payments in cost, speed, access and transparency. Better links between payment systems could help close this gap.
Speed would be another important benefit. A payment system that works in seconds domestically can offer a much better experience when connected to another country’s instant payment system. This could support international retail payments, remittances, tourism and smaller business transactions.
The system could also make trade between BRICS countries easier. A smaller exporter could receive payment from a foreign buyer without having to depend on a long chain of banks. This could be particularly useful for companies in emerging markets that have limited access to large international banking networks.
There is also a wider strategic benefit. More payment routes would give BRICS members greater choice over how international transactions are made. A recent study of BRICS payment cooperation found that local currency settlement and cross border digital payments could reduce transaction costs and support greater financial cooperation among member countries.
This is where the proposal could affect correspondent banking and established international payment networks. It would not necessarily remove the need for correspondent banks or systems such as SWIFT. Instead, it could create another route for selected transactions, allowing businesses and banks to choose between different payment channels.
The link with de-dollarisation
The payment discussion also has a clear connection with the wider BRICS interest in using local currencies for trade. The group has already supported faster and cheaper cross border payment tools and greater use of local currencies. A 2025 BRICS declaration called for continued work on the interoperability of payment systems and the use of local currencies in financial transactions.
A linked payment network could therefore make local currency payments more practical. For example, a Brazilian company buying goods from China could potentially pay in Brazilian reais while the Chinese seller receives renminbi, with the payment system handling the conversion between the two currencies.
This would reduce the need for the dollar to be used as an intermediate currency in some transactions. It would not, however, mean that the dollar would lose its dominant role overnight. The dollar remains deeply embedded in global trade, finance, foreign exchange and reserves. The more realistic outcome would be greater choice, with BRICS countries developing additional payment routes alongside the existing international system.
India’s position is particularly interesting. Its push for CBDC interoperability is focused on making international payments more efficient, while the country is also seeking a greater international role for the rupee. Governor Malhotra has said that India will continue to promote the use of local currencies in cross border trade and payments.
The challenges are significant
The biggest challenge is that connecting payment systems is much harder than simply making them technically compatible. Each BRICS country has different banking rules, foreign exchange controls, data rules, anti-money laundering requirements and approaches to financial regulation.
The BIS has stressed that better cross border payments require more than new technology. Greater agreement on standards, messaging systems and compliance rules is also needed. Without this cooperation, a technically connected system could still face delays because banks and regulators would have different requirements.
CBDC interoperability creates further challenges. Central banks would need to agree on how the currencies are exchanged, where transactions are settled and how risks are managed. They would also need strong systems to deal with fraud, cyber attacks, money laundering and sanctions rules.
Privacy is another concern. Digital payments can create detailed records of financial activity. Governments and central banks would need to balance the need to prevent financial crime with the need to protect legitimate users’ financial information. Research published in 2026 also points to technical questions around privacy, security and the design of CBDCs, showing that interoperability is still an evolving area.
There is also the question of demand. Building a payment corridor does not guarantee that businesses will use it. Banks, companies and consumers will continue to choose the payment method that is cheapest, safest and easiest to use. If foreign exchange is difficult or liquidity is limited, users may continue to rely on established currencies and payment channels.
An opportunity for banks and financial institutions
For banks, the development of BRICS payment links could create both pressure and opportunity. Banks that currently earn fees from correspondent banking and foreign exchange services could face greater competition if some payments move through direct digital channels.
At the same time, banks could gain new roles. They could provide foreign exchange services, liquidity, compliance checks, digital wallets and payment services connected to the new infrastructure. Banks with strong links to both domestic and international markets could become important bridges between different payment systems.
The opportunity could be especially important for banks in emerging markets. If a wider BRICS payment network becomes reliable, smaller banks could gain easier access to international payment corridors without having to build relationships with a large number of foreign banks.
The development could also encourage financial institutions to invest more heavily in digital payment infrastructure. The growth of instant payments in domestic markets has already shown that customers expect fast and simple transactions. Cross border payments may increasingly be expected to provide the same experience.
A possible new payment map
The most important point is that BRICS is not simply discussing another payment app. The larger idea is to create links between different national payment systems and, potentially, between different forms of central bank money.
If successful, this could create a network of alternative payment corridors. A payment between India and Brazil, China and the UAE, or other BRICS markets could potentially move through linked national systems rather than following the same path as a traditional correspondent banking transaction.
Research published in 2026 argues that cross border digital payments are one of the most promising areas for deeper BRICS financial cooperation, although it also points to the need for common technical standards and regulatory coordination.
This makes the current discussions important even if a full BRICS payment network is still some way away. The value may not come from creating one system that replaces everything else. It may come from creating several connected systems that give businesses and consumers more ways to move money internationally.
What comes next
The next stage will be less about announcing a new payment system and more about solving the practical problems behind interoperability. BRICS central banks will need to agree on technical standards, foreign exchange arrangements, settlement methods, data rules and compliance requirements.
The group will also need to decide whether fast payment systems and CBDCs should be developed as two separate projects or as parts of one wider network. Fast payment links could deliver benefits sooner because several BRICS countries already have functioning domestic systems. CBDC links could offer a more direct form of settlement, but they require greater technical and policy coordination.
The experience of other international projects suggests that a gradual approach may be more realistic. The BIS has found that standardised links between domestic instant payment systems can make cross border connections easier, while experiments such as Project Rialto show how central bank money and digital foreign exchange tools could support faster settlement.
