"2026 Digital Year" kicks off! Japan's Finance Minister announces promotion of cryptocurrency and blockchain asset adoption

The Japanese government has officially entered a new stage of digital transformation. Earlier this month, Japanese Finance Minister Shōgetsu Katayama delivered a significant speech at the New Year opening ceremony of the Tokyo Stock Exchange, explicitly positioning 2026 as the “Digital Year One,” marking a major shift in Japan’s policies on digital assets and cryptocurrencies. This declaration not only reflects the government’s determination but also signals that Japan’s traditional financial system is about to undergo profound changes.

Strategic Turning Point for the Japanese Economy: From Deflation to Digital Upgrade

Shōgetsu Katayama admitted that 2026 will become a “turning point” for Japan’s economy. For a long time, Japan has been mired in deflationary difficulties with sluggish economic growth. Facing this challenge, the government has decided to adopt a more proactive fiscal policy, focusing investments on industries with growth potential, among which digital transformation is seen as the key to breaking the deadlock.

More notably, the investment mindset of Japanese citizens has also become a policy focus. Compared to advanced economies like the United States, the process of Japanese people shifting from savings to investments is significantly lagging. The government has decided to fully support this from a policy level, encouraging citizens to invest idle funds into the market, thereby stimulating economic vitality and promoting the widespread adoption of digital asset allocation.

Three Major Policy Pillars: From Fintech to Blockchain Ecosystem

Shōgetsu Katayama’s speech revealed three core policies driving the government’s digitalization efforts:

First, the government will strive to integrate digital assets and blockchain assets into the traditional financial system, allowing the public to benefit from the economic gains brought by this financial revolution. This is not only an acknowledgment of new types of assets but also a redefinition of the boundaries of traditional finance.

Second, traditional securities exchanges are assigned a new historical mission. Katayama emphasized that infrastructure development of exchanges is crucial and will become a key bridge for promoting cryptocurrencies and digital assets. Institutions like the Tokyo Stock Exchange need to upgrade their functionalities to provide regulated and secure trading environments for digital assets.

Third, the government will fully support Japanese exchanges in building a trading ecosystem that combines cutting-edge financial technology with new technologies. This means not only accepting new assets but also enhancing the technological standards and market competitiveness of the entire trading system.

International Benchmarking and Future Outlook: How ETFs Could Rewrite the Financial Landscape

Katayama specifically mentioned the experience of the United States. In the US, Exchange-Traded Funds (ETFs) have become an important tool for ordinary investors to hedge inflation. She hinted that Japan might also replicate this model in the future by promoting related financial products to expand the application scenarios of digital assets.

Achieving this vision requires Japanese exchanges to continuously innovate and build a more competitive financial environment. From digital infrastructure to investor education, from policy support to market openness, Japan is gradually constructing a complete digital financial ecosystem. The designation of 2026 as the “Digital Year One” marks the starting point of this strategic transformation. In the future, how digital assets and blockchain technology will reshape Japan’s financial landscape remains to be closely watched.