India proposes CBDC rules to replace the dollar and cryptocurrencies

Source: Criptonoticias Original Title: India proposes CBDC rails to displace the dollar and cryptocurrencies Original Link: https://www.criptonoticias.com/comunidad/adopcion/india-propone-cbdc-desplazar-dolar-criptomonedas/ The Reserve Bank of India proposed interconnecting central bank digital currencies (CBDC) of the BRICS group, which now includes Brazil, Russia, India, China, and South Africa, among other nations. This plan aims to set aside the influence of the dollar and digital assets like bitcoin (BTC) just as new threats of tariffs emerge from U.S. President Donald Trump.

Sources familiar with the matter revealed to Reuters on January 19, 2026, that the plan aims to simplify and accelerate cross-border payments for both trade and tourism within the bloc. If accepted, this proposal would lay the groundwork for the first formal leader-level discussion on the interconnection of CBDCs within the group.

India’s approach arises despite Trump having threatened, on several occasions, to impose 100% tariffs on BRICS nations if they advance in developing alternatives to the dollar as a reserve currency.

Currently, no BRICS nation has fully implemented a CBDC, although all key members are running active pilot programs. India’s digital rupee or e-rupee, launched in December 2022, has already attracted about seven million retail users, while China continues with its plans to expand the international use of its digital yuan.

It is possible that India’s proposal will consolidate the use of the multi-CBDC platform mBridge, led by China, which has already processed more than 4,000 cross-border transactions.

India’s move aligns with a broader effort by emerging economies to build alternatives to dollar-based payment systems. In this context, China’s mBridge platform has demonstrated notable progress.

As of November 2025, mBridge processed over 4,000 cross-border transactions worth approximately $55.49 billion. This volume represents an increase of 2,500 times since its initial pilots in 2022, when it handled 164 transactions totaling $22 million.

Analysts point out that these platforms are creating <> that, gradually, reduce dependence on dollar-based systems in specific corridors and sectors, without necessarily challenging their global dominance directly.

India’s proposal for the BRICS could extend this digital connectivity to an even broader group of emerging economies, marking a significant step in reconfiguring the international financial landscape.

Beyond that, the Indian government has repeatedly consulted regulators and experts about the feasibility of a possible general ban on cryptocurrencies in the country, arguing that central bank digital currencies, like the digital rupee, offer similar advantages in transfers and payments without the inherent risks of private crypto assets. However, as of January 2026, digital assets like bitcoin (BTC) remain legally recognized in India, although they operate under a strict regulatory regime.