The Japanese Liberal Democratic Party has launched a blockchain finance working group to promote a national blockchain finance strategy

The Liberal Democratic Party of Japan today established the "Next Generation AI and On-Chain Finance Vision Project Group," founded by former Digital Minister Hirai Masaki, with former Ministry of Finance official and current chairman of the LDP Blockchain Promotion Parliamentary Alliance Kihara Seiji serving as director. The group is dedicated to formulating a national-level AI-driven on-chain finance framework, marking the formal inclusion of blockchain finance into the structural economic agenda of Japanese politics.

Hirai Masaki stated in an interview that the integration of AI and blockchain will first impact the financial industry within a few years, saying, "This is not something that will happen in 5 to 10 years." He pointed out that while Japan already has infrastructure such as the JPYC stablecoin, the joint stablecoin projects of Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho banks, as well as tokenized deposits from Japan Post Bank, there is a lack of a unified blueprint among these components.

The project's recent goal is to publish a white paper covering regulatory reform proposals such as trust law, deposit insurance, and KYC frameworks, and to incorporate these into the LDP's growth strategy and the government's annual fiscal policy guidelines, while also pressuring the Financial Services Agency and the Ministry of Finance to accelerate action from regulatory bodies.