Innovation in both blockchain security and international payments is coming from two global powers – France and Japan.
Financial Action Task Force
A global task force called the Financial Action Task Force (FATF) is in some ways a French creation – now the Japanese are leading the pack in creating a new global cryptocurrency payment network to replace the SWIFT system, with the blessing of the FATF.
“In June, the FATF revealed plans to strengthen control over crypto exchanges to preclude digital currencies from being used in money laundering and related financial crimes,” writes Marie Huillet at Cointelegraph this morning, going over some of the basics of the context that this project developed in.
A Reuters report goes over details on the new cryptocurrency network, although all of this is given to reporters by an anonymous source in Tokyo.
The Japanese system shows promise for evaluating the impact of coins like Facebook Libra, but also for innovating international monetary exchange – critics of SWIFT’s lengthy process and high fees would likely welcome a new cryptocurrency-based system.
However, fans of traditional decentralized blockchain networks may consider Japan’s plan to be unappealing as a centralized system. That leads to the whole debate about whether or not cryptocurrency networks should be decentralized or not.
“It remains unclear whether the network would meet resistance from users, given that the attraction of cryptocurrencies is, in part, in their unregulated nature,” writes Reuters reporter Takahiko Wada. “That lack of regulation is precisely what worries governments and central bankers. … Facebook’s recent announcement of plans to launch a digital coin has met with a chorus from regulators, central banks and governments insisting the tech giant must respect anti money-laundering rules and ensure the security of transactions and user data.”
Either way, the transparency of blockchain could help fight money-laundering in the global economy – keep an eye out as this plan proceeds toward verification and prominence.