MUMBAI, Jan. 20 -- India central bank has proposed linking the official digital currencies of BRICS countries to facilitate cross-border trade and tourism payments, potentially reducing reliance on the US dollar amid rising geopolitical tensions. The recommendation was made by the Reserve Bank of India (RBI) to the government ahead of India hosting the 2026 BRICS summit.

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If approved, this would mark the first formal proposal to connect central bank digital currencies (CBDCs) of Brazil, Russia, India, China, and South Africa. Sources familiar with the matter, who requested anonymity, confirmed the initiative is under consideration but declined to provide further details.

The move could irritate...