Japan’s ruling Liberal Democratic Party launched a new team on Tuesday to create a national plan for using artificial intelligence in blockchain-based finance. This is Tokyo’s biggest step so far towards building a legal structure for digital financial systems.
This decision shows Japan’s leaders now see blockchain technology in finance as a key part of the economy, not just a small area of interest. It’s important enough to require cooperation between different government departments.
“Not a 5-to-10-Year Story”
A new team focused on the future of AI and blockchain technology held its initial meeting on Tuesday. The group was created by Taira Masaaki, who previously led the Liberal Democratic Party’s efforts on web3 since 2023. Kihara Seiji, a blockchain expert and former Finance Ministry official, is leading the team. Murai Hideki, a well-known figure within the LDP, is serving as the team’s secretary-general.
自民党デジタル社会推進本部
「次世代AI・オンチェーン金融構想プロジェクトチーム（木原誠二座長/村上英樹事務局長）」キックオフ！
— 平将明（たいらまさあき/Taira Masaaki） (@TAIRAMASAAKI) March 24, 2026
Taira, in a recent interview with NADA News, predicted that the combined power of artificial intelligence and blockchain technology will have the biggest impact on the financial industry, and soon. He believes this transformation won’t take years, but will happen within just a few.
Japan is making significant progress in digital currency. Last October, the country launched JPYC, its first stablecoin officially recognized as a payment method. Furthermore, three of Japan’s largest banks – MUFG, SMBC, and Mizuho – are collaborating to create their own stablecoin, and Japan Post Bank is exploring tokenized deposits using the DCJPY digital currency.
Taira believes the different parts haven’t come together to create a fully working system yet. He explains that while the individual pieces are developing well, there’s no overall plan for how they should connect and function as a complete financial system.
The primary aim right now is to create a report detailing the necessary changes to regulations – specifically regarding trusts, deposit insurance, and customer identification procedures. This report will then be used to inform the LDP’s economic growth plan and the government’s yearly budget guidelines.
Putting Pressure on Regulators
Taira intentionally chose Kihara to lead the new group. He actively encouraged Kihara to take the position, explaining that it needs someone with a strong understanding of both finance and technology, and who can effectively challenge regulators. Taira previously stated in a public video with Kihara that the group’s creation would put pressure on the Financial Services Agency and Ministry of Finance.
Traditional banks and financial companies are caught in a tricky situation, as described by Taira. They need to keep their older systems running – like Zengin and SWIFT – at the same time as investing in new blockchain technology.
He explained that while people understand the need for action, they’re unsure if the timing is right. He believes a strong, clear plan from the government would give banks and investment firms the confidence to move forward.
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2026-03-24 05:11