Business

Erik Gibbs

Japan pushing for an international SWIFT-like solution for crypto

Japan is willing to do what most other governments won’t – embrace cryptocurrencies. The country has already shown to be a supporter of the Bitcoin ecosystem by introducing a number of regulations that allow digital currencies to evolve and mature as a viable alternative to money, and is now looking to help facilitate further growth, and responsible money transactions, through a global crypto transaction solution.

According to Reuters, Japan has reportedly begun to work on a new international SWIFT-like network for the crypto industry, minus the serious delivery times and high fees seen with the fiat alternative. The idea is to incorporate a global crypto payments system that will facilitate faster transactions while reducing concerns related to crypto being used to launder money. 

If things go according to plan, the new system could be up and running within just a couple of years, according to someone familiar with the plan in Japan. The Financial Action Task Force (FATF) will reportedly monitor the development and provide input on its performance, and Japan will also accept input from other countries for the platform’s framework.

The new crypto payments solution has been approved by the FATF, which gave it the green light in June. It had previously been suggested by the Ministry of Finance and the Financial Services Agency of Japan, and is now gathering steam to become a reality.

More than likely, given how some countries have still not been able to get their heads wrapped around the idea of a digital currency, the payments solution will meet some resistance when it’s finalized. However, Japan will almost certainly be working with financial regulators from different countries over the next couple of years in order to shed light on how it will work and why it is needed. The global reluctance at top governmental levels to accept crypto continues, albeit slowly, to wane and digital currencies are increasingly becoming a target for positive growth, instead of negative friction.

Crypto has been a major topic of discussion as leaders of the G20 have met to discuss a myriad of economic issues impacting global finance. As financial representatives from the governments of the G7 meet in France this week, it is almost certainly going to continue to be a main topic of that group, as well.

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