Takeshi Fujimaki, a pro cryptocurrency, member of parliament asked Prime Minister Abe about cryptocurrency and blockchain technology.
There was an interesting statement in Prime Minister Abe’s response.
In consideration of international trends, i will be calling cryptocurrencies as ‘digital assets’. We believe that blockchain technology is not only useful for digital assets in the financial field, but also has great potential in improving convenience and security for various businesses. By utilizing a globally unprecedented new business model and the recently established sandbox system (isolated testing environment to test new technology), a domestic venture has endeavored to increase the liquidity of digital assets and is a venture that can compete worldwide in this field. We must pay close attention to this. I also studied about crypto assets and blockchain.Reference: Coinpost.jp *(translated from Japanese to English by excormedia)
Now, let’s explore the “domestic venture” that Prime Minister Abe was referring to.
Did Prime Minister Abe Refer to GVE Co.Ltd.?
Companies Involved in the EXC Project
There are 2 main companies involved in the EXC Project which are:
- Excor Ltd
- GVE Co.Ltd.
Excor is a private limited company incorporated in the United Kingdom and GVE is a limited liability company located in Japan. Although the relationship between these 2 companies are not clear, on Excor Ltd official website it writes:
GVE, our system development partner based in Japan, has developed a proprietary security feature.Reference: Excor Mission Statement
Hence it is safe to say that they are separate entities that cooperate together and share a common vision.
Is it? or is it not?
Although many companies in Japan including SBI Securities are currently aiming to increase the liquidity of digital assets, none are ‘venture companies’ OR ‘utilizing a new business model’.
At the Future Investment Council (13th meeting), the regulation sandbox system is explained as follows:
A system that enables a practical application of innovative technologies such as AI, IoT, and blockchain, and uses the data obtained to further develop the appropriate regulatory system for the safe use of the technology.
Reference: Overview of the regulatory sandbox system and the Innovative Business Activity Evaluation Committee *(translated from Japanese to English by Excormedia)
Similarly to Ai, IoT, blockchain, drones and autonomous vehicles, EXC is an advanced technology where it is highly likely that the sandbox system has been applied to test its practical use.
In addition, the background of the legislation is also worth mentioning.
The implementation of new information technologies such as IoT, big data, and AI is accelerating on a global scale. The key to strengthening the international competitiveness of Japanese industry is to activate the metabolism of industries and further increase productivity. It is a necessity to develop regulatory measures to utilize new information technology, improve the conditions for businesses to link and share data between one another, promote venture investment and business restructuring, and boost the productivity of SMEs. In recent years, technological innovation in the information technology field has changed industrial structures and international competitiveness conditions. In order to respond to this change and increase the productivity of Japanese industries in a short period of time, it is necessary to utilize innovative technologies and new business models.Reference: Overview of the regulatory sandbox system and the Innovative Business Activity Evaluation Committee *(translated from Japanese to English by Excormedia)
From this we can see that the Japanese government is strongly aware of the new wave of information technology that is occurring worldwide.
Since the Japanese government is promoting a cashless society, we suspect that they are willing to help companies with advanced technology that is internationally competitive.
To know which company Prime Minister Abe was referring to, it must fulfil the following four requirements:
- Use the sandbox system
- Domestic Venture Company
- Aims to increase the liquidity of digital asset
- World’s first business model
GVE is based in Japan and is a venture company in terms of scale, recognition and business function.
The whole aim of EXC is to increase the liquidity of digital assets (EXC), and there is no other businesses/projects that has acquired large amount of patents like GVE, and utilizes the world’s first business model with central banks and governments as their customer.
However, it is currently not possible to determine whether GVE uses the sandbox system.
It is likely that the developer Mr. Fusa will be the one certifying the use of the sandbox system, however Mr. Fusa is known for lowering the operation cost as much as possible, evident as he developed EXC so that it requires no labour cost and persists on not advertising EXC (which is why excormedia was made by Keiya, who admires Mr. Koji). Hence we think that Mr. Fusa will choose the most economically advantageous option.
Additionally, there is a “gray zone elimination system” in the sandbox system, which makes it possible to avoid risks of violating the law for regulations that are legally ambiguous.
Since the EXC project developed by GVE is second to none, it can be inferred that there is an incentive to utilize the system.
In conclusion, it is highly likely that Prime Minister Abe was referring to GVE.
We tried to find a company that met the four requirements based on Prime Minister Abe’s statement, but we could not find any candidates other than GVE. (If you have an idea, please share it through our contact form page!)
If Prime Minister Abe’s really was referring to GVE, it can be inferred that the Japanese government is supportive of GVE’s project. Which is great news for EXC fans.