BRICS Pay as the BRICS Payment System in the Legal Framework for Transactions in BRICS Countries

Abstract

Contemporary geopolitical and economic transformations necessitate the establishment of alternative payment systems as a critical issue on the international agenda. The modern challenges arising in international trade and economic relations encourage discussions regarding the feasibility of adopting new payment methods, including the use of cryptocurrencies and digital financial assets in cross-border transactions. In this regard, payment systems play a pivotal infrastructural role, ensuring the stability of international economic relations in cross-border transactions. Furthermore, the legal frameworks governing the operation of any international payment system must take into account the nuances of the national legislation of the participating States, especially with respect to permissible payment methods, means of payment, and the payment systems administration. A concerted initiative to align the legal systems of BRICS Member States, as well as the regulatory frameworks essential for the functioning of payment systems and cross-border settlements within BRICS, should be pursued simultaneously with, if not prior to, the technological and infrastructural developments associated with the implementation of these systems. Following a thorough analysis of the legal framework surrounding international payment systems, financial information exchange systems, and the risks linked to the establishment of the BRICS payment system — including direct competition among BRICS member economies and varying “sanction” statuses — the author concludes that it is prudent to formulate a comprehensive international agreement that considers the essential requirements of the national legal systems of the participating countries. Furthermore, the author argues that particular attention should be paid to the issues surrounding the potential use of cryptocurrency (either existing or specifically created for the purposes of BRICS Pay). The author provides a rationale for the endorsement of a treaty that would authorize cryptocurrency transactions within the BRICS Pay framework, subject to the regulation of the central banks of the Member States.