Japan's LDP Backs AI-Blockchain Financial System Plan
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Japan's LDP Backs AI-Blockchain Financial System Plan

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Japan’s ruling LDP approved a proposal for an AI and blockchain-powered financial system supporting tokenized deposits and stablecoins

Japan's LDP Backs AI-Blockchain Financial System Plan

Japan's ruling Liberal Democratic Party has formally approved a policy concept proposal to construct a next-generation financial system built on artificial intelligence and blockchain infrastructure. The proposal received official sign-off from the party's Policy Research Council on Tuesday.

Titled "Next-generation AI & Onchain Finance Concept," the proposal was drafted by an internal LDP project team led by party member Seiji Kihara and submitted to the party earlier this month. Kihara described the approval as a starting point, adding that the team would "build it up piece by piece" and that the follow-up work is what matters most.

At the center of the proposal is a framework for automated financial infrastructure capable of supporting 24/7 agenticcommerce through blockchain networks. The proposal argues that as AI systems increasingly make purchasing decisions autonomously, blockchain's programmable and tamper-resistant properties make it well-suited to underpin those transactions.

The plan also includes support for tokenizeddeposits and Japanese yen-denominated stablecoins. On deposits, it states that tokenizing the Bank of Japan's current account deposits is essential. On stablecoins, it calls for legal clarity and measures to contain systemic risk.

The proposal endorses a joint stablecoin issuance initiative currently being developed by three of Japan's major banks. It also calls for a framework to strengthen AI and blockchain cooperation with other Asian nations.

The LDP has asked the Financial Services Agency to prepare a five-year roadmap for promoting investment in the project, involving both public and private sector participants. With the council's approval, the party will now move to translate the concept into formal government policy.

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