Panel 2 - Digital Frontiers: AI, Blockchain, and Crypto「AI」「ブロックチェーン」「暗号資産」から読み解くデジタル経済の最前線

Key Concepts

Digital Assets: Broad category encompassing cryptocurrencies, stablecoins, and tokenized traditional assets.
Blockchain Technology: A distributed, immutable ledger system enabling secure and transparent transactions.
AI (Artificial Intelligence): Machine learning systems capable of performing tasks that typically require human intelligence.
Stablecoins: Cryptocurrencies pegged to a stable asset, like a fiat currency, to minimize volatility.
Tokenization: The process of converting rights to an asset into a digital token on a blockchain.
Web3 ID: A decentralized identity system for verifying users and entities in the digital space.
GENIUS Act & Clarity Act (U.S.): Proposed legislation aimed at regulating stablecoins and providing clarity on blockchain technology usage.
MiCA (Markets in Crypto-Assets Regulation - Europe): Comprehensive regulatory framework for crypto-assets in the European Union.
Hiroshima AI Process: An international initiative led by Japan to establish global AI governance principles.
AI Strategic Headquarters (Japan): A government body established to oversee AI policy and development.
Collateral Mobility: The ability to move collateral assets efficiently and globally, a key opportunity for blockchain.
Agentic Commerce: Commerce facilitated by AI agents acting on behalf of users.
Kill Switch: A mechanism for halting or controlling financial systems during crises.

Digital Frontiers: AI, Blockchain, and Crypto

This discussion explores the evolving landscape of digital technologies, focusing on Artificial Intelligence (AI), Blockchain, and Cryptocurrencies, and their profound impact on global finance, market structures, and policy. The panel features Yuval Rooz (digital finance entrepreneur), Oki Matsumoto (Chairman of Monex), and Takuo Imagawa (Vice Minister for International Affairs at the Ministry of Internal Affairs and Communications, Japan).

The Inevitable Future of Digital Assets

Yuval Rooz highlights the global proliferation of digital assets, extending beyond cryptocurrencies to encompass various financial instruments like repos, U.S. treasuries, gilts, mortgages, insurance, alternative investments, commodities, and loans. He emphasizes that while the U.S. has been slower in regulation, a shift in government posture is crucial. Blockchain technology can often operate within existing regulatory frameworks, and the fear of being associated with crypto has historically deterred large financial institutions from adopting it.

Key Developments in U.S. Regulation:

GENIUS Act: Aims to make stablecoins legal tender, a significant step towards their integration.
Clarity Act: Intended to provide clearer guidelines for the use of blockchain technology.

Rooz points to the SEC's Crypto Task Force as an example of regulators engaging with the technology, evidenced by numerous submissions and open conversations, including Coinbase's recent application for regulatory exemptions. He notes that governments are leveraging digital infrastructure for global dominance, citing China's e-Yuan and initiatives in Hong Kong for cross-BRICS FX settlement as examples. The choice is between a passive or active approach to these technologies.

Regulation Beyond the U.S.:

Europe has implemented MiCA.
Japan has been at the forefront of regulation.
Hong Kong has also been proactive.
The U.S. is now catching up.

Mobility and Privacy in Digital Assets:

Rooz distinguishes between the "mobility" aspect of digital assets (24/7 frictionless asset movement), exemplified by the $300 billion stablecoin market, and the critical need for "privacy." Traditional financial institutions like Citadel would not accept public visibility of their collateral movements or trading positions. The convergence of mobility and privacy is seen as a significant opportunity.

Collateral Mobility as a Major Opportunity:

Globally, there is $260 trillion in eligible collateral, with only 10-11% utilized.
The inability to move assets globally 24/7 frictionlessly leads to over-collateralization and inefficient balance sheet management.
Rooz anticipates U.S. treasuries, gilts, and Eurobonds to be movable 24/7 globally by early next year.
This enhances the utility of government bonds, making them more attractive to investors and aiding governments in their positioning for global dominance.

Implications for Japan:

Japan needs to consider how to position Japanese Government Bonds (JGBs) within global collateral networks.
The Yen needs to be positioned as a global asset class that can participate frictionlessly in the global economy, potentially through stablecoins and deposit tokens.

Opportunities and Challenges for Japan

Oki Matsumoto frames the discussion around the significant opportunities and threats for Japan in the context of AI, blockchain, and token-based finance. He notes Japan's cultural familiarity with robots (Doraemon, Astro Boy) suggests a readiness to adopt new technologies. The aging society also presents a need for AI-driven services for financial management and information gathering.

AI and English Language Barrier:

AI can help overcome Japan's historical challenge with English proficiency, allowing Japanese individuals to access global financial services without needing to speak English.
AI agents can find services worldwide for Japanese users.

Japanese Personal Financial Assets:

Japan holds $13 trillion in personal financial assets.
Government programs like NISA have driven significant investment abroad, particularly in U.S. equities (e.g., S&P 500 ETFs).
AI agentic services can cater to this aspiration for global investment.

Risks and Safeguards:

AI can be vulnerable to phishing, fake smart contracts, and social network scams.
Blockchain and Web3 ID technologies are crucial for safeguarding AI-driven services.
Web3 ID can verify AI interactions, while blockchain can ensure immutable information and multisignature systems can prevent unauthorized actions.
Japan's "My Number" national ID system, with its private key functionality, provides a strong technological foundation.

Challenges for Japanese Financial Sector and Regulators:

Regulatory Challenge: Current regulation focuses on domestic providers. AI agents will enable Japanese users to access global services directly, bypassing traditional regulatory oversight.
Financial Institution Challenge: Japanese banks, brokers, and asset managers will face direct competition from global players facilitated by AI agents, similar to how smartphones disrupted feature phones and Amazon disrupted retail.
Both regulators and financial institutions need to adapt to these changes.

AI's Potential for Japan:

AI can unlock dormant capital in Japan and create significant opportunities, leveraging its large personal financial assets and technological readiness.

AI Policy and Global Governance

Takuo Imagawa, Vice Minister for International Affairs at MIC, Japan, focuses on AI policy and its implications. He highlights Japan's commitment to advancing information technologies, referring to his priorities as the "four eyes": AI, digital infrastructure, cybersecurity, and information integrity.

AI Usage in Japan:

International comparisons show AI adoption in Japan, both among citizens (generative AI) and enterprises, is relatively low compared to other countries.
Japanese users are more cautious due to concerns about risks and unintended consequences.
This necessitates enhanced efforts in:
1. Communicating AI benefits.
2. Promoting safe and trusted AI applications.
3. Fostering an ecosystem where innovation and governance coexist.

Japan's New AI Act and Strategic Headquarters:

Japan enacted a new AI Act in May to align with international norms and balance innovation with risk management.
An AI Strategic Headquarters, directly under the Prime Minister, has been established, signifying AI's strategic importance.
A comprehensive AI action plan will guide policy measures across sectors.

Key Initiatives under the AI Act:

Accelerating AI R&D (e.g., multilingual LLMs).
Promoting expansion and sharing of AI infrastructure (e.g., data centers).
Driving AI adoption, especially in SMEs and public services.
Fostering global cooperation in AI governance.

Japan's Contribution to Global AI Governance:

Japan has taken leadership roles in G7, OECD, and G20 forums.
It was an early proponent of international AI governance discussions.
Hiroshima AI Process (2023): Established under Japan's G7 presidency, it introduced a voluntary reporting framework for companies to demonstrate adherence to an international code of conduct for advanced AI systems.
This framework allows companies to disclose comparable information on risk management and incident reporting.
20 leading AI companies have already submitted reports.
Hiroshima Process Friends Group: Includes 56 countries and regions, fostering collaboration on global AI norms.

Comparative View of Global AI Governance Approaches:

EU: Comprehensive and precautionary model (AI Act), classifying AI by risk and enforcing strict requirements for high-risk applications. Focus on human rights, accountability, and transparency.
U.S.: Innovation-prioritizing, more deregulatory approach (AI Action Plan) with pillars of innovation acceleration, infrastructure building, and international diplomacy.
Japan (G7): Globally coordinated, consensus-based, and voluntary approach, utilizing flexible guidelines and agile multi-stakeholder processes. This model emphasizes adaptability and innovation.

These models are seen as complementary, aiming for safe, secure, and trustworthy AI.

Key Considerations for Emerging Technologies in Financial Services:

Imagawa outlines five critical dimensions for applying AI, Blockchain, and Crypto in finance:

Compliance: Alignment with existing regulations.
Cybersecurity: Protection against vulnerabilities like algorithmic manipulation.
Data Governance: Safeguarding sensitive data and privacy.
Interoperability: Compatibility with legacy and cross-chain systems.
Risk Management: Monitoring volatility and systemic risks.

These are vital for building resilience, trust, and responsible innovation.

Market Structure and Risks

Market Structure Shifts:

Yuval Rooz: Predicts technology companies will increasingly resemble financial service providers. Companies like Citadel Securities and Jane Street are already acting like banks. The GENIUS Act contemplates new organizations providing financial services. Several tech companies are considering issuing their own stablecoins. Crypto exchanges are evolving into broker-dealers offering services for traditional equities.
Oki Matsumoto: Believes tokenized JGBs, tokenized deposits, and tokenized money market instruments are potentially superior to stablecoins. Traditional financial institutions (banks, trust banks) are better suited for providing tokenized securities, provided they adapt and regulators respond effectively. He suggests a market with tokenized JGBs and deposits would be more user-friendly than numerous tech companies launching various stablecoins.

User Experience and Demand:

Oki Matsumoto: Emphasizes that technology alone doesn't drive adoption; users need to feel services are easy to use and beneficial. Creating real demand is crucial. He also advocates for simplifying the language used in the crypto and blockchain industry.
Yuval Rooz: Agrees that jargon can be used to confuse. He cites Robinhood's announcement about tokenizing OpenAI, which misled customers into believing they were trading OpenAI shares, highlighting the need for specificity and clarity from regulators like the SEC.

Major Risks:

Yuval Rooz: The ability to move assets 24/7 globally, while beneficial, increases the risk of financial crises developing faster. The lack of a "weekend break" for traditional markets means crises could escalate rapidly. He questions the existence of "kill switches" or mechanisms for regulators to intervene when systems operate continuously.
Oki Matsumoto: While blockchain generally enhances security when used correctly, he expresses genuine worry about AI. He references Sam Altman's comments about GPT-5 surpassing human capabilities and the potential for AI to make mistakes at a much faster and more powerful scale. He likens this to science fiction scenarios like "Terminator" and stresses the crucial importance of governance.
Takuo Imagawa: Acknowledges the concern about AI agents and human intervention. He believes AI can enhance security and resilience if harnessed correctly. He also raises concerns about the energy consumption of blockchain networks and the surge in demand for data centers and AI, which consume significant electricity, necessitating a balance with power grids and telecommunication networks.

AI for Security and Resilience:

Takuo Imagawa: AI agents can be crucial for next-generation cybersecurity. At the Mobile World Congress, he observed AI agent models capable of autonomously handling risks, enabling real-time threat detection, self-healing capabilities, and post-quantum cryptography optimization.

Conclusion and Synthesis

The discussion underscores a transformative period driven by AI, blockchain, and crypto. Yuval Rooz highlights the inevitable integration of digital assets into global finance, emphasizing the need for privacy alongside mobility and the potential for enhanced collateral utilization. Oki Matsumoto points to significant opportunities for Japan, particularly in leveraging AI to overcome language barriers and tap into its vast personal financial assets, while also warning of the disruptive challenges to its financial sector and regulatory framework. Takuo Imagawa provides a crucial policy perspective, detailing Japan's proactive approach to AI governance through the Hiroshima AI Process and its balanced strategy of fostering innovation while mitigating risks.

A central theme is the evolving market structure, with technology companies increasingly acting as financial service providers and traditional assets becoming tokenized. The discussion also grapples with significant risks, including the acceleration of financial crises due to 24/7 asset mobility and the potential for AI to make powerful, rapid mistakes. The need for robust governance, clear regulation, and user-friendly adoption strategies is paramount across all these domains. The panel concludes by emphasizing the importance of finding a "good mixture" of promoting innovation and mitigating risks, with AI offering potential solutions for enhanced security and resilience, while also presenting new challenges related to energy consumption and autonomous decision-making.