The Japanese government plans to create a cryptocurrency project similar to SWIFT payment network. It aims at fighting against money laundering in digital space, Reuters writes.
What’s the Gen on the Project?
According to a source, Japan is set to create an alternative of SWIFT (international interbank system for transmitting information and payments) for cryptocurrencies in a few next years.
The insider claims that the project is monitored by an intergovernmental Financial Action Task Force on Money Laundering (FATF). At the same time, Japan authorities plan to cooperate with other governments in the framework of development.
Meanwhile, users on the network are interested in whether the Japanese development will not become an alternative to the full-pledged Ripple project and its cryptocurrency XRP.
“About time someone other than Ripple thought about this. Swift is outdated and needs to be replaced. Banks know that but are just lazy since their profits are high,” – wrote user BigDog on Twitter.
Recall that the company offers banks tech solutions based on the blockchain technology, which allows speeding up the transfer process while implementing cost savings.
Recently, representatives of the Ripple project have declared their intentions to overcome SWIFT payment system.
– Ripple is meant to replace SWIFT
– XRP is meant to be a digital way to move value
– All of Ripple's customers are using both Ripple and SWIFT
Cory Johnson, Ripple
— Steven Bull From the Diep (@DiepSanh) January 3, 2019
Why does Japan Need SWIFT for Cryptocurrency Payments?
The details of the project are unknown, but it is reported that the payment system’s plan has already been approved by the Ministry of Finance (Japan) and the Financial Services Agency (FSA).
The issue of the secure cryptocurrency payments organization is relevant for Japan since the work with digital assets remains in demand in the country.
#Japan to lead development of #SWIFT network for #cryptocurrency pic.twitter.com/9sxiFByhga
— Rich Tehrani (@rtehrani) July 18, 2019
The development will allow controlling operations with cryptocurrencies. However, it may encounter resistance from users of digital assets.
The main advantage of cryptocurrency is it allows users to avoid the regulators’ monitoring.
In 2017, Japan became the first country in the world that formed the norms for regulating digital asset exchanges at the national level.
Japan continues to consolidate the status of cryptocurrency at the legislative level, and the legislative base is designed to strengthen the actions of local regulations in the field of cryptocurrency assets trading.
The Japanese experience of self-regulation should set an example for other countries as a step in the development of the industry.
A bet on self-regulation can make jurisdictions most attractive both for investors and for the business community working with blockchain and cryptocurrency technologies.
To date, the map of cryptocurrency acceptance points in the country is as follows:
Recall, recently it became known that New Kuwaiti Bank has launched a product for remittances across the border, based on the RippleNet technology.
The first bank in Kuwait was the National Bank of Kuwait that became the first financial institution in the country to introduce a money transfer product for international online payments based on the RippleNet blockchain technology.
It is expected the product to accelerate cross-border remittances.