Tokyo Creates a SWIFT-like Network for Crypto Payments

The Japanese government is creating a payment network for cryptocurrencies for global use similar to SWIFT(Society for Worldwide Interbank Financial Telecommunication) that is currently used by banks.

Tokyo Swift-like Crypto Payment Network

With this initiative, Japan wishes to combat money laundering issues that might spring from digital currencies, especially with the rise of fears from many governments, and after US President anti-crypto tweets and US Treasury Secretary’s concerns about illicit activities he claims cryptocurrencies can cause.

In cooperation with the Financial Action Task Force(FATF), Japan’s Ministry of Finance and the Financial Services Agency(FSA) envisaged the idea of developing the network and have it operating in five years.

According to a Reuters report, the network permits international transactions and payments to be made saying that its source is an anonymous «person with the plan». Although the FSA and the Ministry of Finance refused to comment on the authenticity of the article, Reuters affirms that FATF approved the project in June.

Tokyo reports that gangs like Yakuza were linked with crimes relating to laundering money using Bitcoin and other crypto coins, to the point that crypto-alimented laundering became a widespread issue in Japan.

SWIFT dominates the market of global interbank messaging that allows the share of financial information between institutions via a secure and reliable network. 

Since the first appearance of cryptocurrencies, Japan has been one of the most crypto-tolerant countries, viewing them with more of a friendly approach and with relatively less confining regulations. Its capital hosted the largest crypto exchange before it was hacked in 2014 and forced to shut.

France quickened to create a taskforce that gathers G7’s finance ministers for a meeting that will be held this week to discuss Libra’s regulations and the future ambitions and roles of cryptocurrencies.

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