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G7 to Create Japan’s Global Crypto Payments Network- An Alternate To SWIFT?

A new, global cryptocurrency payments network is soon going to be created with the backing of the Japanese government, to prevent money-laundering issues. Japan would also cooperate with other countries in its upcoming endeavors to fight against the cybercrimes. The updates have come through a reportby Reuterson July 18.

As per the information, the new system possibly is an alternative to the conventional and standardize payments network i.e., SWIFT- The Society for Worldwide Interbank Financial Telecommunication. When money travels from one country to another, SWIFT provides a network to send and receive financial transactions information, in a form of payment orders, through a secure and reliable SWIFT code to the intermediaries (financial institutions).

The displayed information reveals that Tokyo is expected to launch the new network in the upcoming years. However, complete information is yet to be disclosed. Only the hints have come into light about Japan’s plan of replacing SWIFT with a global crypto payment network, by the unnamed source to the publication because the information by the authorities hasn’t made public yet.

Reportedly, the plans for the robust network at first suggested by the country’s Financial Services Agency (FSA) and Japan’s Ministry of Finance. To make the network strong enough in its approach and function smoothly- the G7 initiated, Financial Action Task Force team- an intergovernmental organization that looks after legal, regulatory, and operational actions- is taking the corrective measures in the development. FATF is aimed to fight against global money laundering issues and the members approved the plans in June, as per the source, the report outlined.

Last month, the FATF has also shown its plans for strengthening the rules and regulations to prevent crypto exchanges, how they can take corrective measures to stop money laundering and related financial crimes. The remarks are highlighted by the Secretary Steven T. Mnuchin FATF Plenary Session Orlando, Florida which is shown on the website of U.S. Department Of  The Treasury.

Reason for Japan’s Global Crypto Payments Network- Facebook’s Libra & Associated Risk

Reuters cited out that Financial regulators from worldwide, central banks, and governments are highly concerned about the repercussion which Facebook’s impending stable coin can bring, with special reference to money-laundering issues.

The anti-money-laundering (AML) compliances have to be fulfilled by the social media cum tech giant before jumping in the pool of digital assets. The situation is jittery all over the world due to the lack of correct and effective regulatory steps which has become the reason for concerns, especially related to Facebook’s Libra project because it has a huge potential to overpower the existing financial systems and economies worldwide considering its large user base which is over 2 billion.

The news outlet while concluding mentions that G7 finance ministers would hold a meeting in France this week and digital currency is likely to be one of the most crucial topics to be discussed.

Image by Masashi Wakui from Pixabay

Tags: Bitcoin Regulations News, Japan, Regulators, Central Banks, Money laundering, Facebook, Libra, Government, SWIFT, FATF, AML Policies, Adoption, Cryptocurrency.