Japan's Ruling Party Approves AI and Blockchain Financial Framework on May 19

According to the Liberal Democratic Party's Policy Research Council, Japan approved the 'Next-Generation AI and On-Chain Finance' proposal on May 19, 2026, positioning on-chain finance including stablecoins and tokenized deposits as core national financial infrastructure. The plan is being considered for inclusion in Japan's 2026 Economic and Fiscal Management document for Cabinet approval in June.

Key elements include tokenization of Bank of Japan current accounts, accelerated yen-denominated stablecoins with legal clarity for salary and tax payments, and on-chain settlement for T+0 instant trading on the Tokyo Stock Exchange. The proposal designates on-chain finance as a national growth investment area alongside AI and semiconductors, backed by a five-year roadmap and public-private partnerships.