LDP Approves AI and Blockchain Plan for Japan Next-Gen Finance

Japan's ruling Liberal Democratic Party has formally approved a strategic proposal to build a next-generation financial infrastructure that integrates artificial intelligence and blockchain technology. The plan, approved by the party's Policy Research Council, aims to create an automated financial ecosystem capable of operating around the clock.

The proposal, titled the "Next-generation AI On-chain Finance Concept," was drafted by a party project team led by member Seiji Kihara. It envisions a system where AI agents autonomously select products and services, with blockchain technology providing the secure, programmable payment rails necessary for such automated commerce. Officials say the tamper-resistant and verifiable nature of blockchain is highly compatible with AI-driven operations.

A central component of the strategy involves the development of tokenized bank deposits and Japanese yen-denominated stablecoins. The plan explicitly calls for the tokenization of the Bank of Japan's current account deposits to enhance efficiency. It also supports a joint stablecoin issuance project involving the nation's three largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui...