Japan is leading the creation of an international cryptocurrency payment network similar to the banking network SWIFT

Japan is leading the creation of an international cryptocurrency payment network similar to the banking network SWIFT

Translator: Play the coin family ElaineHu

In terms of cryptocurrency, Japan will further promote its pioneering spirit. According to Reuters, the Japanese government is currently developing an international cryptocurrency payment network, similar to the SWIFT network currently used by banks.

Japan introduces encryption technology into the mainstream payment field

Japan’s plan is ostensibly to eliminate concerns among governments around the world about digital currency alleged money laundering crimes. A few days ago, US Treasury Secretary Steven Mnuchin told reporters:

"Illegal activities such as cryptocurrency such as Bitcoin are used to support illegal activities such as cybercrime, tax evasion, extortion, ransomware, illegal drugs and human trafficking, and may involve billions of dollars."

He added that Facebook's Libra "may be abused in money laundering and terrorist financing."

The Financial Action Task Force (FATF) has allegedly approved the Japanese plan in June. The network was originally proposed by the Japanese Ministry of Finance and the Financial Services Agency (FSA). The FSA intends to work with the FATF to put the network into operation within five years.

Replace traditional payment networks

SWIFT operates a payment network that enables financial institutions around the world to send and receive information about financial transactions in a secure, standardized and reliable environment. Founded in 1973, SWIFT dominates the international interbank information business. The company connects 11,000 financial institutions in more than 200 countries and territories around the world and provides about 32 million messages a day.

Historically, Japan has been the most friendly jurisdiction for cryptocurrencies. In 2017, Japan took the lead in recognizing virtual currency as a means of payment. Tokyo was home to Mt. Gox, the largest cryptocurrency exchange in the early days, and the exchange was hacked in February 2014 and forced to close the service.

As Facebook’s encryption ambitions force regulators to face the challenges of digital currency, and the G7 finance ministers’ meeting to be held in France this week, the role of cryptocurrency in the future of finance has become An increasingly heated debate topic.

It remains to be seen whether Japan plans to establish a regulatory framework in the industry to protect it from risks. But this innovative Northeast Asian country has always been optimistic about virtual currency and its prospects.

However, those who advocate decentralization have always opposed the regulation. Decentralization and review of resistance have always been the core spirit of cryptocurrency.

However, the skepticism of the FATF and US regulators may force the involvement of regulators, both to combat money laundering and to protect consumers, because in this world, traditional banking is slowly giving way to more innovation. Financial services agency. Japan may be in a leading position in this field.

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