Prospects for a Single Framework of CBDC-Based Cross-Border Payments in the BRICS Countries. Part 1

Since the dawn of the 21st century, the BRICS nations—Russia, Brazil, India, China, and South Africa—have emerged as key players among developing economies, collectively accounting for 35% of the global gross product. The profound transformational shifts driven by the current geopolitical landscape have prompted a re-evaluation of existing international trade models, igniting a surge in innovative solutions for the technological advancement of the global financial system. One of the key focus areas for the BRICS central banks is the digitalisation of monetary transactions and pilot exploration of Central Bank Digital Currencies (CBDCs).

In recent years, 143 countries have unveiled national initiatives to develop CBDCs, representing a 98% of the world economy. Among these, 66 countries are actively piloting CBDCs, including Russia, Brazil, China, and India. The progress made by the BRICS nations in developing and testing digital currencies is noteworthy, as shown in Table 1.

China stands as both the current and historical frontrunner in the research and pilot implementation of the digital currency. In 2024, the total transaction volume for digital yuan came to $986 billion,  with over 180 million personal wallets created during that period.  The People's Bank of China is rolling out this initiative across 17 provinces, engaging sectors such as retail, restaurants, education, healthcare, and tourism via both online and offline technology. Throughout 2025, plans are in place to test the payment of taxes, fines, and various government fees,  alongside the establishment of a new international operation centre in Shanghai aimed at promoting the digital currency's global reach.

The Reserve Bank of India has been piloting its electronic rupee (e-rupee) since 2022, with transaction volumes reaching $122.4 million by 2025.

In Brazil, the Central Bank is collaborating with major financial institutions and tech giants like Google, Mastercard, Amazon, Visa, and Santander to launch its digital currency, Drex. In 2025, key focus areas for Drex include loans backed by government securities, trade finance, and real estate transactions.

In Russia, the rollout of the digital rouble began in 2023. Early results reveal that over 2,500 wallets have been created, more than 100,000 transactions have taken place, and over 17,000 smart contracts have been executed during testing, encompassing payments for goods and services, charitable donations, fines, and scholarships. The Bank of Russia has launched a dedicated round-the-clock portal to assist banks involved in the platform. Starting September 1, 2026, trade and service companies with annual revenues of 120+ million roubles, which are clients of systemically important banks, will be required to possess infrastructure for transactions in digital roubles.

The growing collaboration among the BRICS nations is driving the need for streamlined cross-border transactions and the development of a unified framework for CBDC projects. Experts believe that several more years will be necessary to fully integrate the digital currencies into international settlements. This unified payment framework promises to significantly cut transaction costs and processing times, enabling instant payments within 10 seconds, available 24/7 all year round.

Particular attention should be given to the ongoing projects for cross-border settlements in digital currencies involving the BRICS countries. The experience gained from these initiatives paves the way for establishing a modern model of a unified framework tailored specifically for the BRICS nations.

Since 2017, China and Brazil have been engaged in a groundbreaking initiative in this segment known as mBridge.  In January 2024, a significant milestone was reached when the first cross-border payment in digital dirhams, amounting to 50 million, was successfully executed between the UAE and China. This transaction showed that the project reached the stage of a minimum viable product for cross-border payments.

In 2024, Brazil became a participant in the Agorá project, aimed at developing a cutting-edge "single registry" system for the Bank for International Settlements. This system will integrate central bank currencies and other tokenised assets, including tokenised cashless bank deposits, into a unified decentralised registry.

South Africa has been actively involved in several initiatives, including the Khokha project since 2017, the SWIFT CBDC project since 2021, and the Dunbar project since 2022. These efforts have culminated in pilots for instant cross-border payments.

In 2023, pilot cross-border settlements in digital currencies were conducted between Belarus and Russia. Experts estimate that the use of the digital rouble could lead to annual savings for businesses ranging from 15 billion to 103 billion roubles, assuming the digital currency achieves a turnover of between 1% and 5%.
As part of these pilot projects, the BRICS countries must collaborate to tackle several challenges: establishing compatible standards for the issuance and circulation of digital currencies; harmonising local legislation; extending cross-border control mechanisms to digital currencies akin to foreign exchange controls; continually updating IT infrastructure; implementing uniform information security standards; overcoming entrenched social habits; identifying economic incentives for adopting digital currencies; and exploring multiple use cases for all participants.

In the BRICS landscape, various possibilities for utilising digital currencies within a unified framework may involve employing national digital currencies in international transactions or creating a single digital currency for settlements between the BRICS nations. Special attention should be given to the emerging trend of seamlessly integrating traditional (centralised) finance with decentralised finance.

This text reflects the personal opinion of the authors', which may not coincide with the position of the BRICS Expert Council - Russia.

Co-author of the article: Anastasia Baboshkina A.A., PhD in Economics, postgraduate student at the Department of International Finance, MGIMO, Ministry of Foreign Affairs of Russia