Japan's LDP Advances AI and Blockchain Financial System Proposal

According to The Block, Japan's ruling Liberal Democratic Party (LDP) approved a new policy proposal on Tuesday to build a national financial system utilizing AI and blockchain technology. The initiative, titled "Next-generation AI & Onchain Finance Concept" and led by party member Seiji Kihara, prioritizes automated financial infrastructure supporting 24/7 agentic commerce via blockchain networks.

The proposal supports tokenized Bank of Japan deposits and Japanese yen-denominated stablecoins, while emphasizing legal clarity and systemic risk mitigation. It also calls for closer cooperation with other Asian nations on AI and blockchain initiatives, with the Financial Services Agency tasked to develop a five-year roadmap for public and private sector investments. Following approval, the LDP will work with relevant parties to translate the proposal into government policy.