According to media reports, the government of Japan plans to develop a SWIFT-like payment network for Bitcoin, Ripple, Ethereum and others. One of the purposes of the payment network is to avoid money laundering by using cryptocurrencies.
The fact that Bitcoin & Co. would facilitate money laundering is a criticism that the crypto-community probably faces since the first media reports on BTC. Cryptocurrency critics like to use the argument to illustrate the dangers posed by cryptocurrencies. Now Japan wants to tackle this problem. According to previously unconfirmed reports, the island nation is planning a SWIFT-like network to better monitor cryptocurrency payments.
Japanese government agreed with FATF
This is reported by the UK department of the international news agency Reuters in citing an anonymous source. According to Reuters, the project is run by the Japanese government and supervised by a department of the Financial Action Task Force (FATF). However, little is known about the technical design of SWIFT for Bitcoin & Co. so far.
However, the FATF had already approved the plans of the Japanese Ministry of Finance in June 2019.
Ultimately, the message fits into the current events / the current news about crypto currencies. For example, members of the US Senate admitted on July 17 that they could not stop the continued enforcement of cryptocurrencies. Here, a rethinking seems to be on the way. While some years ago the regulatory narrative went into the direction of any possible prohibitions, governments now apparently recognize that this is not possible.
Acceptance by Bitcoin users questionable
The “danger” of cryptocurrencies seems to be recognized and governments can now try to minimize the possible damage. An international payment network for cryptocurrencies could certainly help to improve the reputation of cryptocurrencies. Whether this will be approved by decentralization-minded crypto fans, however, must remain questionable.
Japan decided in June to crack down on the regulation of cryptocurrencies. At the time, it was said that it was precisely the taxation and compliance with each policy that needed to be monitored more efficiently.