The Japan Liberal Democratic Party proposes AI, blockchain, and financial policies—focusing on tokenization and stablecoins and calling on the Financial Services Agency to set a five-year roadmap.

Japan’s Liberal Democratic Party proposes to build a nationwide financial infrastructure for artificial intelligence and blockchain, using tokenized deposits and stablecoins to support an AI autonomous economy, and to set a five-year roadmap.

According to The Block’s report on 5/19, Japan’s governing party, the Liberal Democratic Party (LDP), through its “Next-Generation AI and On-Chain Finance Vision” project team, released policy recommendations on 5/19. The proposal calls for establishing nationwide financial infrastructure centered on artificial intelligence and blockchain. The two main pillars are “tokenized deposits” (TDs) and “stablecoins” (SCs), clearly pointing to readiness for an era of “agentic commerce”—where AI agents autonomously carry out economic activities—and laying the required foundational infrastructure.

Policy direction: automated payments and 24-hour financial services

The proposal’s goals include automated payments, lending, and asset management, and it also supports 24-hour financial services. The project team notes that “on-chain financial infrastructure is a must-have for AI agent economic activity,” and must be prepared before the era arrives when AI agents autonomously complete commercial transactions. The proposal is part of the LDP Policy Research Council’s “Digital Society Promotion Headquarters.”

Implementation timeline: tokenization of Japan Central Bank accounts and stablecoin issuance by three major banks

The proposal requires that, by the end of 2026, key issues regarding the tokenization of current account deposits at the Bank of Japan (BOJ) and wholesale CBDC be made public. For stablecoins, it calls for multiple ministries to work together to establish their lawful status for uses such as salary payments and tax payments. The document also mentions the three major banks in Japan’s “joint stablecoin issuance” plan—under which the LDP has stated it will review with the goal of “starting actual operations before March 2027.”

Strategic purpose: avoid reliance on overseas payments, and set a five-year roadmap

The LDP warns that if the response is slow, Japan’s dependence on overseas payment systems will deepen and monetary sovereignty will be weakened. The proposal calls on the Financial Services Agency (FSA) to lead the creation of a five-year roadmap and to promote broader joint investment between the public and private sectors. This move aligns with South Korea’s FSC announcement on 5/14 to publish rules for tokenized securities in July, with the law taking effect on 2/4/2027; the UK BoE/FCA’s launch of tokenized wholesale market consultation on 5/18; and the US SEC’s “Innovation Exemption” being promoted this week, creating a synchronized regulatory push across the three major markets of Asia, Europe, and the United States.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《Japan’s Governing Party Proposes an “AI x Blockchain Financial System”: Stablecoins and Tokenized Deposits as the Core》
• Original author: Elponcrab