Japan Bootstraps Regulated SWIFT-Like Global Crypto Payments Network
Japan is set to further its pioneering spirit when it comes to cryptocurrency. The Japanese government is currently developing an international cryptocurrency payments network similar to the SWIFT network currently used by banks, Reuters reports.
Japan Leads Crypto Into the Mainstream
The Japanese plan is ostensibly designed to counter money laundering fears digital currencies have given rise to among governments worldwide. A few days ago, U.S. Treasury Secretary Steven Mnuchin told reporters:
“Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.”
He added that Facebook’s Libra “could be misused by money launderers and terrorist financiers.”
The Financial Action Task Force (FATF) is said to have approved the Japanese plans in June. The network was originally proposed by Japan’s Ministry of Finance and the Financial Services Agency (FSA). The FSA is intent on having the network operational within five years, in cooperation with FATF.
Swiftly Disrupting Legacy Payments Networks
SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, operates a network enabling financial institutions around the world to send and receive information about financial transactions in a secure, standardized, and reliable environment. Founded in 1973, SWIFT dominates international interbank messages. Linking more than 11,000 financial institutions in more than 200 countries and territories worldwide, the company services roughly 32 million messages a day.
