The plan envisions tokenized bank deposits linked to smart contracts to streamline payments for trade and logistics, with clear legal treatment for stablecoins—including wages, taxes, and capital contributions within the year.

Smart-contract-based programmable payments could trigger transactions automatically when conditions are met, reducing human intervention.

Japan’s Liberal Democratic Party is advancing a Next-generation AI & Onchain Finance Concept that would integrate tokenized deposits, yen-stablecoins, and 24/7 programmable settlement into the country’s financial system.

Leader statements emphasize the project as a developing concept that must be built out step by step with ongoing follow-up after approval.

Across the crypto and blockchain sectors, the move is seen as a sign of mainstream adoption and growing institutional confidence in blockchain infrastructure beyond trading.

The proposal aligns with megabank initiatives on yen-stablecoin issuance and targets real-use deployment by next March, highlighting overseas cash management for large firms.

The push for stablecoins is framed as reducing exposure to external market volatility and cutting reliance on foreign rails by accelerating on-chain settlements and clarifying regulation.

Japan already settles 40%–50% of its trade with Asian partners in yen, providing a foundation for broader regional payment cooperation.

Overall, the initiative signals a long-term vision where AI and blockchain are interdependent foundations for a next-generation economy.

Experts warn that security, transparency, data privacy, regulatory compliance, and governance challenges require extensive development, testing, and oversight before full deployment.

The plan aims to weave AI and blockchain into core financial infrastructure to boost efficiency, transparency, and global competitiveness in a rapidly evolving tech landscape.

The Bank of Japan is urged to explore tokenized current account deposits and wholesale CBDC use, with a concrete implementation path expected to be published by year-end.