Proposals for the implementation of a platform for conducting international settlements in digital currencies of central banks

Abstract

The BRICS countries intend to create a common payment platform for conducting transactions in digital currencies at the international level – the BRICS Bridge project. The article provides a framework for the development of international CBDC transaction platform that would address the problem of high transaction costs and excessive transaction time for international settlements, which are currently one of the main issues in the traditional economy. Processes and governance structure of the platform are described in the work. Research has shown that CBDC settlements on a distributed ledger technology (DLT)-based platform can reduce information fragmentation and increase information flow for regulatory bodies. However, the use of DLT in international settlements is associated with numerous technical and legal risks, including privacy and data security risks, financial monitoring complications, contradictions between national and international legislation, and bank disintermediation risks. To mitigate these risks, a scheme for conducting international digital transactions based on DLT, combining national and international legislation, and ensuring data privacy and security is proposed.