BRICS nations are discussing plans to connect their fast payment systems and central bank digital currencies as the group explores ways to reduce the cost of cross-border transactions and strengthen financial cooperation among member countries.
According to Reuters, Reserve Bank of India Governor Sanjay Malhotra said several options are being considered, including linking central bank digital currencies (CBDCs) and national fast payment systems, although discussions remain at an early stage.
The talks could have significant implications for the expanding BRICS bloc, which includes major African economies such as South Africa, alongside Brazil, Russia, India, China and other member countries.
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Speaking at an event in Mumbai, Malhotra said cross-border payments remain an important area of interest for BRICS because of the potential to reduce transaction costs.
Reuters previously reported that the Reserve Bank of India had recommended that a proposal to connect BRICS central bank digital currencies be included on the agenda for the 2026 BRICS summit, which India is hosting.
The RBI also intends to continue efforts to internationalise the Indian rupee and encourage greater use of local currencies for international payments and trade, according to Malhotra.
Connecting payment infrastructure across BRICS economies could provide another avenue for facilitating transactions between member countries, although Reuters reported that the proposals remain under discussion and no final framework has been announced.
Beyond cross-border payments, Malhotra also addressed the growing role of artificial intelligence in banking, describing AI as a capability that financial institutions should harness while managing its associated risks.
The RBI governor urged Indian banks to maintain inventories of the AI models they use and establish board-approved governance policies as financial regulators pay closer attention to cybersecurity, operational and governance risks associated with the technology.
Malhotra said innovation and safety should be treated as complementary requirements for building a durable financial system.
What This Means For Africa
For Africa, discussions around BRICS payment connectivity could be particularly significant as the continent seeks to reduce the cost and complexity of cross-border transactions and deepen trade relationships with major emerging economies.
South Africa’s membership places the continent directly within the discussions, while the broader expansion of BRICS has increased Africa’s representation within the grouping.
Potential interoperability between fast payment systems and CBDCs could eventually create new channels for trade and financial transactions between African economies and other BRICS markets if member countries reach an agreement and establish the necessary regulatory and technological frameworks.
The discussions also reflect a wider effort among emerging economies to strengthen local-currency settlement and develop financial infrastructure capable of supporting international trade.
For African businesses trading with BRICS markets, progress towards cheaper and more efficient cross-border payment systems could reduce transaction friction and strengthen commercial links. However, with negotiations still at the discussion stage, the eventual structure and implications of any BRICS-wide payment arrangement remain uncertain.
BRICS discussions on connecting fast payment systems and central bank digital currencies could open new opportunities for more efficient cross-border transactions, with South Africa positioning the continent within an evolving conversation about the future of international payments.
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Image Credit: Reuters
