Japan's Liberal Democratic Party proposes AI, blockchain, and financial policies! Focuses on tokenization and stablecoins, requesting the Financial Services Agency to establish a five-year roadmap.

Japan's Liberal Democratic Party proposes building a nationwide financial infrastructure based on artificial intelligence and blockchain, utilizing tokenized deposits and stablecoins to support an AI autonomous economy, and has set a five-year roadmap.

According to a report by The Block on 5/19, Japan’s ruling party, the Liberal Democratic Party (LDP), under the "Next-Generation AI and On-Chain Finance Vision" project team, released policy recommendations on 5/19, proposing the establishment of a national-level financial infrastructure centered on artificial intelligence and blockchain. The two main pillars are "Tokenized Deposits" (TDs) and "Stablecoins" (SCs), clearly pointing toward an era of "agentic commerce"—where AI agents autonomously conduct economic activities—laying the foundational infrastructure in advance.

Policy Direction: Automated Payments and 24-Hour Financial Services

The proposal aims to automate payments, lending, and asset management, supporting 24-hour financial services. The project team pointed out that "on-chain financial infrastructure is a necessity for AI agent economic activities," and must be ready before the era when AI agents autonomously complete commercial transactions. The proposal is part of the LDP Policy Research Council’s "Digital Society Promotion Headquarters."

Implementation Timeline: Japan Central Bank Account Tokenization and Major Banks’ Stablecoin Collaboration

The proposal requests that by the end of 2026, key issues regarding the tokenization of Japan’s central bank deposits (BOJ) and wholesale CBDC be publicly disclosed; regarding stablecoins, multiple ministries are asked to collaborate to establish their legal status for salary payments, tax payments, and other uses. The document also mentions Japan’s three major banks’ "joint stablecoin issuance" plan—LDP has stated that they aim to "initiate actual operation before March 2027" for review.

Strategic Purpose: Avoid Dependence on Overseas Payments and Five-Year Roadmap

The LDP warns that if responses are delayed, Japan’s dependence on overseas payment systems will deepen, and monetary sovereignty will be weakened; the proposal calls for the Financial Services Agency (FSA) to lead the formulation of a five-year roadmap and promote broader public-private sector joint investments. This move aligns with South Korea’s FSC announcement on 5/14 to publish tokenized securities regulations in July, with legislation effective from 2/4/2027, the UK BoE/FCA launching wholesale tokenization consultations on 5/18, and the US SEC’s recent push for "Innovation Exemptions," advancing synchronized regulation across Asian, European, and American markets.

• This article is reprinted with permission from: "Chain News"
• Original Title: "Japan’s Ruling Party Proposes 'AI x Blockchain Financial System': Stablecoins and Tokenized Deposits as Core"
• Original Author: Elponcrab