India Rejects BRICS Currency — Everyone Rejects BRICS Currency, U.S. Dollar Remains King A BRICS common currency or digital currency is unfeasible due to the weakness of member economies and a refusal to cede economic control to China, thus preserving the U.S. dollar’s dominance. India has rejected a common currency and its digital payment proposal faces significant technical, political, and trust barriers. None of the BRICS currencies meet the requirements for reserve currency status, which include free convertibility, liquidity, stability, deep capital markets, and credible institutions.

• BRICS common currency and digital currency initiatives are considered impossible due to weak member economies and a lack of trust.
• India has formally declined to join a proposed BRICS common currency and its separate digital payment proposal faces substantial obstacles.
• The U.S. dollar remains the world’s dominant reserve and exchange currency, with BRICS currencies being weaker than G7 currencies.
• No BRICS currency meets the criteria for reserve-currency status, such as free convertibility, liquidity, and stability.
• Technical and political barriers, including interoperability standards, governance rules, and trust among nations, hinder the realization of a BRICS digital payment system.
• The mBridge cross-border CBDC project, involving several BRICS-aligned nations, saw the Bank for International Settlements exit due to sanctions constraints with countries like Russia and Iran.
• Convertibility issues, capital controls, and currency volatility plague BRICS currencies, making them unattractive for reserve status.
• Despite rhetoric against it, the U.S. dollar’s reserve share decline is largely attributed to the euro’s adoption within the eurozone, not a broad abandonment of the dollar.