Japan's LDP Launches On-Chain Finance Working Group to Advance National-Level Blockchain Finance Strategy

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Mars Finance News: Japan’s Liberal Democratic Party today established the “Next Generation AI and On-Chain Finance Vision Project Team,” founded by former Digital Minister Hirakawa Akira. Former Ministry of Finance officials and current chairman of the LDP Blockchain Promotion League, Kihara Seiji, serves as director. The team aims to develop a national AI-driven on-chain finance framework, marking Japan’s political sector’s official recognition of blockchain finance as a key economic issue.

In an interview, Hirakawa Akira stated that the integration of AI and blockchain will lead the financial industry to be disrupted within a few years, “This is not a matter for 5 to 10 years from now.” He pointed out that Japan already has infrastructure such as the JPYC stablecoin, a joint stablecoin project by Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho banks, as well as tokenized deposits by Japan Post Bank, but there is a lack of a unified blueprint among these components.

The project’s immediate goal is to release a white paper covering regulatory reforms such as trust law, deposit insurance, and KYC frameworks, incorporating the LDP growth strategy and government annual fiscal policy guidelines. They are also pressuring the Financial Services Agency and Ministry of Finance to accelerate regulatory actions.

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