India Plans CBDC Link With Thailand, Malaysia, Vietnam For Faster Cross-Border Payments: Report

India is collaborating with Thailand, Malaysia, and Vietnam to link their respective central bank digital currencies (CBDCs) with the goal of facilitating faster and more efficient cross-border payments, according to a report by Moneycontrol. Discussions on this matter are advancing, with the central banks of these nations exploring how CBDCs can streamline international transactions.

FM Nirmala Sitharaman has urged the Reserve Bank of India (RBI) to advance the CBDC development and bolster the digital rupee's capabilities within the context of a broader tokenization push. The push for CBDC integration among BRICS countries stems from the 18th BRICS summit, held in India, where leaders endorsed initiatives to enhance payment-system connectivity and promote trade and investment through the use of local currencies.

India has previously proposed linking CBDCs among BRICS nations to expedite international payments, reduce costs, and enhance transparency. The digital rupee, or e₹, is currently being developed by the RBI for both retail and wholesale applications and is being evaluated for additional use cases, including cross-border transactions with multiple countries.

While the pilot phase of India's digital rupee rollout is ongoing, the RBI is assessing various use cases. India is also exploring other options for international trade settlements, such as local currencies, bilateral currency arrangements, and increased reliance on the rupee. The BRICS grouping comprises Brazil, Russia, India, China, and South Africa as founding members, with additional members including Egypt, Ethiopia, Iran, UAE, and Indonesia. Partner countries within the BRICS framework include Malaysia, Thailand, Vietnam, and others.