Japan LDP Approves AI, Blockchain Plan for National Finance

Japan’s Liberal Democratic Party on Tuesday approved a policy concept to build a national financial system using artificial intelligence and blockchain. The Policy Research Council gave formal approval to the document, titled ‘Next-generation AI & Onchain Finance Concept,' which was drafted by a project team led by Seiji Kihara and submitted to the party earlier this month.

The proposal outlines a blueprint for an automated financial infrastructure designed to support continuous, 24/7 commerce carried out by autonomous software agents. The document describes a model of ‘agentic commerce' in which AI systems select and arrange purchases and services on behalf of people. It argues that blockchain ledgers can provide verifiable records and programmable rules to automate transactions between those agents.

On digital-money measures, the proposal recommends tokenizing the Bank of Japan’s current-account deposits to create onchain versions of central bank liabilities that could operate inside the proposed system. It also supports development of yen-denominated stablecoins while calling for clear legal rules and safeguards to limit risks to the wider financial system. The document expresses backing for a joint stablecoin issuance project by three major Japanese banks.

The proposal requests that the Financial Services Agency prepare a five-year roadmap to guide public and private investment. It seeks a framework to increase cooperation with other Asian countries on AI and blockchain initiatives and to align cross-border projects and standards.

The LDP plans to work with government agencies, financial institutions and industry stakeholders to translate the concept into formal policy. The document is presented as an early-stage plan rather than draft legislation and calls for phased work to address legal, technical and financial risks before wider implementation.

Kihara wrote on X that the document is ‘a concept' and that work will proceed ‘piece by piece,' adding that follow-up work will continue as the plan develops.