The government of Japan wants to establish a global network that facilitates digital currency transfers, much like the SWIFT network utilized by banks at present. SWIFT network is the global payments messaging system which the banks use for sending money all over the world.
According to Reuters reports which quoted a person close to the plan, the authorities have a strong belief that such kind of framework would help combat money laundering instances to a great extent.
The person, on a condition to remain anonymous as the information is not yet shared with the public, also went on to add that Tokyo has plans to have this network up and running ‘in the next few years.’
The source also revealed that this network’s development will be monitored by the intergovernmental FATF, short for Financial Action Task Force. Moreover, the government of Japan will be seeking cooperation from other nations as well. The network is suggested by the FSA (Financial Services Agency) and Japan’s Ministry of Finance. Interestingly enough, the FATF has already approved the network in June, as per the source. However, there is no clarity as yet on how this new network would be functioning.
It must be noted here that Japan went on to become the first nation in the world to have proposed regulations on digital currency in the year 2017. What’s more, Tokyo stresses on the security of cryptocurrencies and hopes to drive in fintech and crypto-related firms so that the country’s economic growth can be accelerated further.
How users will be reacting to the new regulated network is something that remains to be seen. After all, it is the unregulated characteristics of digital assets which have attracted users’ attention, globally. The absence of regulation, on the other hand, is a cause of worry from the government’s point of view.