At the upcoming BRICS summit in September 2026, India aims to advance cooperation on cross-border payments by integrating digital payment systems and central bank digital currencies to ease trade between member countries.
- BRICS agenda focuses on digital payments and CBDCs integration
- Current correspondent banking structure causes high fees and delays
- Goal to increase use of national currencies in trade settlements
What happened
The 18th BRICS summit, hosted by India in New Delhi, plans to prioritize improving cross-border payment systems among member countries. Ahead of the summit, finance and central bank officials met to discuss increased financial cooperation and the feasibility of linking digital payment systems and central bank digital currencies (CBDCs).
Current cross-border payments are routed through complex networks of correspondent banks, often involving currency conversions via third-party currencies such as the US dollar. This process increases transaction costs and causes delays. The summit aims to address these inefficiencies and explore technological solutions for smoother transaction flows within the bloc.
Why it matters
For developing economies within BRICS, dependence on dominant global currencies like the US dollar exposes them to external monetary policies and inflated transaction fees, sometimes reaching double-digit percentages. The existing SWIFT messaging system underpins much of this structure but requires large intermediaries, adding costs.
Reducing reliance on intermediaries by integrating digital currencies and enabling direct settlements in national currencies can lower costs, increase transparency, and foster tighter economic ties. This is especially critical given the decline in correspondent banking relationships globally and the commercial challenges banks face in maintaining these networks.
What to watch next
Attention will focus on concrete outcomes from the BRICS summit regarding the operational linking of digital payment systems and CBDCs. Adoption by member states of mechanisms promoting national currency usage for trade settlements will be monitored closely.
The degree to which BRICS countries can establish an alternative to existing correspondent banking and SWIFT dependencies will be indicative of the bloc's success in reshaping cross-border payments. Observers will also watch for progress in overcoming regulatory and technical barriers to wider implementation.