BRICS weighs linking instant payments, digital currencies across member states

The BRICS nations are mulling the idea of linking their individual instant payment systems and central bank digital currencies to streamline cross-border transactions among member states. Reserve Bank of India Governor Sanjay Malhotra disclosed these talks to Brazilian media, as reported by TV BRICS. Malhotra explained that merging independent national financial systems into a unified payments infrastructure could significantly reduce cross-border payment costs, which are a shared concern among BRICS members.

He emphasized the group's potential to achieve substantial savings through enhanced financial connectivity, though specifics of any possible shared infrastructure or its timeline remain under discussion. BRICS, which now includes Brazil, Russia, India, China, South Africa, Egypt, the United Arab Emirates, Ethiopia, Indonesia, Iran, and Nigeria, has each nation operating separate financial systems and national currencies.

The technical and regulatory coordination needed for such integration is a considerable challenge. Nigeria joined BRICS as a partner country in January 2025, following Brazil's announcement of its admission during the bloc's presidency. The significance of Nigeria's inclusion may lie in future opportunities for its financial system to benefit from expanded payment connectivity as other BRICS partners are integrated.

This development follows Nigeria's reaffirmation of its support for BRICS' agenda in advancing financial cooperation among emerging economies in April 2025.