Key Points
- India’s proposal for linking BRICS payment systems and central-bank digital currencies (CBDCs) was not included in the New Delhi Declaration.
- The omission is significant as cross-border payments were a key agenda item during India’s BRICS chairmanship.
- The declaration only ‘acknowledged’ the work of the BRICS Payment Task Force (BPTF) on exploring efficient cross-border payment mechanisms.
- Experts believe that without a coordinated action plan, trade in local currencies is unlikely to reach significant volumes despite gradual growth.
- Discussions on local-currency trade settlement have been ongoing for over a decade within BRICS, with slow and incremental progress.
India’s push to link the payment systems of BRICS countries, including through the possible interoperability of central-bank digital currencies (CBDCs), has not found its way into the grouping’s New Delhi Declaration, leaving its 16-year effort for trade in local currencies without a settled payment architecture.
The omission is significant because India had made cross-border payments a key element of its agenda for BRICS chairmanship.
Key Points
- India’s proposal for linking BRICS payment systems and central-bank digital currencies (CBDCs) was not included in the New Delhi Declaration.
- The omission is significant as cross-border payments were a key agenda item during India’s BRICS chairmanship.
- The declaration only ‘acknowledged’ the work of the BRICS Payment Task Force (BPTF) on exploring efficient cross-border payment mechanisms.
- Experts believe that without a coordinated action plan, trade in local currencies is unlikely to reach significant volumes despite gradual growth.
- Discussions on local-currency trade settlement have been ongoing for over a decade within BRICS, with slow and incremental progress.
India’s push to link the payment systems of BRICS countries, including through the possible interoperability of central-bank digital currencies (CBDCs), has not found its way into the grouping’s New Delhi Declaration, leaving its 16-year effort for trade in local currencies without a settled payment architecture.
The omission is significant because India had made cross-border payments a key element of its agenda for BRICS chairmanship.
