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Prior to the upcoming G7 summit in France, an insider revealed that the Japan government is set to implement a SWIFT-like network for crypto transactions.
In the traditional financial world, the SWIFT network is responsible for executing transactions across different borders. While this well-governed network has functioned well for as long as it has been in place, it still has some minor drawbacks that the crypto world aims to mitigate and even eliminate. Also, due to stringent governance in the network, some countries have been completely cut off from this service, making it almost impossible to send or receive money from anyone outside the country.
This is where cryptocurrency comes in, by providing these countries and any other user the ability to transfer and/or receive money from anywhere across the globe without any hassle. However, we can’t deny that the crypto world has got its fair share of disadvantages too – maybe even too many to stir panic among users and even governments and other financial agencies.
Therefore, there is a need to make the crypto sphere more secured for consumer’s protection. And that is exactly what the Japanese government plans to do by creating a central cryptocurrency network that would handle the functions of SWIFT as seen in the traditional financial world.
Although we are yet to comprehend in full the manner in which this crypto network will function, the insider explained that the network will be professionally monitored by a team related to the inter-government Financial Action Task Force (FATF). The innovation is reportedly in the pipeline already as the insider claims that the FATF already gave its blessings last month, after it has recommended harsher rules that would apply to crypto exchanges.
Does a Swift-Like Network Is Right for the Crypto Space?
Should this plan take effect, it will be yet another point for Japan as a frontier in the crypto world. You will recall that Japan was the first country to take the bull by the horn and regulate the sophisticated crypto world as early as 2017. This very daring move cemented the country as one of the top tech-savvy countries in the world, particularly when it comes to cryptocurrency.
Since then, Japan has made committed moves to further grow the economy by leveraging existing and emerging technologies.
We hope this project goes as planned. However, we are yet concerned as to how well this project will be accepted in the crypto community. For starters, the number one incentive of the crypto world is that users can trust in a totally transparent and decentralized network, free from the scrutiny of the government. Is a SWIFT-like cryptocurrency network the right move for the crypto community?