Why in news
- Over 500 institutional investors managing over 1 trillion USD are attending the iBRICS Summit ahead of the 18th BRICS Summit in New Delhi.
- The summit focuses on linking national fast-payment systems, sovereign wealth deployment, and Central Bank Digital Currency (CBDC) interoperability.
What is the iBRICS Platform?
- An investment and financial architecture initiative organized alongside the BRICS summit framework.
- It aims to connect sovereign wealth funds, pension funds, and institutional investors with infrastructure and green transition projects across member states.
Key Financial Proposals
- Integration of national fast-payment networks across member states to settle cross-border retail and commercial transactions.
- Interoperability of Central Bank Digital Currencies (CBDCs) to reduce transaction reliance on traditional dollar-clearing channels.
- Reduction of currency conversion costs through bilateral local-currency trade settlement mechanisms.
Why it matters
- Provides an alternative cross-border clearing framework amid rising geopolitical fragmentation and sanctions risks.
- Accelerates capital flows from Global South institutional investors into sustainable infrastructure projects.
Key terms
CBDC Interoperability
The technical capability of different central bank digital currencies to operate across borders without intermediaries.
Local Currency Settlement
A mechanism enabling bilateral trade transactions to be invoiced and paid in the currencies of the trading partners rather than a third currency.
Prelims facts
- BRICS original members were Brazil, Russia, India, China, and South Africa, later expanded to include Egypt, Ethiopia, Iran, UAE, and Saudi Arabia.
Mains discussion
- How local-currency clearing systems and CBDC interoperability can mitigate de-dollarisation risks and foreign exchange volatility for emerging economies.
Source: Economic Times
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q1 · GS III · 10 marks
What do you mean by Digital Rupee? In this context, explain the working and progress of India's Central Bank Digital Currency (CBDC). -
2025 · Q97 · General Studies · 2 marks
Consider the following statements with regard to BRICS; I. 16th BRICS Summit was held under the Chairship of Russia in Kazan. II. Indonesia has become a full member of BRICS. III. The theme of the 16th BRICS Summit was Strengthening Multiculturalism for Just Global Development and Security. Which of the statements given above is/are correct? -
2026 · Q90 · General Studies · 2 marks
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct? -
2023 · Q72 · General Studies · 2 marks
With reference to Central Bank digital currencies, consider the following statements : 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-fame for spending it. Which of the statements given above is/are correct? -
2025 · Q7 · GS II · 10 marks
e-governance projects have a built-in bias towards technology and back-end integration than user-centric designs. Examine.