Japan's ruling Liberal Democratic Party is pushing for the adoption of stablecoins, tokenized deposits, and blockchain-based settlement as key financial infrastructure, warning that the nation risks falling behind foreign payment systems.
A proposal approved by the party's Policy Research Council asks the Financial Services Agency to develop a five-year roadmap, establish finance as Japan's 18th growth investment field, and clarify rules for using stablecoins in payroll, tax payments, corporate funding, and cross-border transfers.
“The accumulation of such efforts will help secure Japan's on-chain financial sovereignty and safeguard its monetary sovereignty,” the proposal states.
Industry observers say this move positions Japan's crypto policy within established regulatory frameworks, rather than a loose market experiment. Japan's advantage lies in its large financial institutions, deep capital markets, and a regulatory culture focused on long-term stability, contrasting with the more aggressive commercialization in Singapore and Hong Kong.