Overview
The recent BRICS leaders discussed linking CBDC for cross‑border payments. Although the idea did not enter the final New Delhi Declaration, it highlighted growing interest in alternatives to the U.S.‑dominated SWIFT system.
Key Developments
- India is expected to advocate for a CBDC‑based settlement rail among BRICS members.
- Russia’s Sberbank announced that CBDC settlements could make India‑Russia trade more efficient.
- Multiple sanctions‑free payment systems are gaining traction: CIPS, SPFS, and Iran’s SEPAMA.
- The multi‑CBDC platform mBridge reached minimum viability in 2024 but lost the backing of the BIS in October 2024.
Important Facts
• CIPS processed an average of 679.8 billion yuan (≈ $98.7 billion) per day in 2025, but this is still far below the $1.9 trillion cleared daily by the U.S. CHIPS system.
• SPFS grew to **440 participants** in 2023, with **100+ non‑resident entities**.
• India‑Russia bilateral trade now settles **96 %** of its value in rupees and roubles, managed by **22 Russian banks** (including Sberbank) and **17 Indian banks**.
Exam Relevance
Understanding these payment alternatives is crucial for GS III (Economy) questions on international finance, sanctions, and digital currency policy. The shift away from SWIFT reflects geopolitical realignments that also appear in GS II (Polity) and GS I (International Relations) topics.
Way Forward
• India may continue to champion CBDC linkages within BRICS while monitoring technical challenges.
• The success of mBridge will depend on broader participation beyond the current member‑only network.
• Countries seeking sanction‑free channels are likely to expand usage of CIPS, SPFS, and similar platforms, making them important study areas for future UPSC questions.