Blockchain Technology, BRICS Pay Consortium and the Private International Law Challenges of Decentralized Autonomous Organizations (DAOs)

Abstract

The emergence of Decentralized Autonomous Organizations (DAOs) represents a paradigm shift in organizational governance, replacing traditional corporate structures with algorithmically governed models on blockchain networks. This article provides an analysis of the private international law (PIL) challenges posed by the BRICS Pay Consortium, a proposed decentralized payment messaging system for BRICS member states, modeled on DAO principles. The BRICS Pay Consortium DAO highlights a fundamental tension between the transnational and often decentralized nature of blockchain and conventional territorial legal frameworks. The Consortium is designed to operate without a central headquarters or legal personality, thus undermining traditional PIL connecting factors-such as domicile, registered office, and principal place of business-used to determine jurisdiction and applicable law. The article examines divergent global framework for the regulation of DAOs. By evaluating current responses-including statutory legal wrappers and on-chain dispute resolution-this article demonstrates that existing doctrines are inadequate for decentralized entities. It concludes that existing frameworks on jurisdiction and choice of law are currently inadequate for the complexities of the BRICS Pay Consortium DAO. Ultimately, the article argues that resolving these challenges requires a transition from traditional territorial models toward regulatory innovation, contractual best practices, and cross-border cooperation.