According to an insider familiar with the matter on Thursday, the Japanese government is leading innovation to build a payment network for cryptocurrencies similar to SWIFT used by banks.
This news comes in an effort of the Japanese government to fight financial crimes and money laundering. According to the report, these are issues resulting from either the adoption and/or use of the blockchain and cryptocurrencies in the region.
As the innovation is yet to be made public. The insider source, whose identity is not certain for security reasons, clarified that the innovation is in active development. The new crypto payment system would allow for a much easier mode of settlements, transaction speed, and cost-effectiveness.
According to the source, the Japanese government aims to corporate with other countries in achieving this accomplishment. The developments would be monitored by the Intergovernmental Financial Task Force (FATF).
The development, according to the report was proposed by the Japanese Ministry of Finance and approved by the FATF in June of this year and plans of implementation have since then begun.
Japan is known to have widely adopted the blockchain technology and made many innovations from its building blocks. The country leads a pack including other countries which have active blockchain and cryptocurrency regulatory practices and allows for active developments in the blockchain and crypto space.
Although recently, Japan was one of the countries which disapproved of the much controversial Facebook cryptocurrency, Libra. The Bank of Japan (BoJ) too recently went against the idea of central banks developing national cryptocurrencies. The nation has been investing heavily in developing itself using the blockchain as a means of substantial economic growth and developments.
At the moment, no regulatory measures have been taken by the country’s Financial Service Agency (FSA) and how this new crypto payment network would be regulated.