How AI can transform Japan’s economy

Duckbucks: How does the Financial Services Agency think about evaluating and integrating novel technologies into Japan’s financial ecosystem? Are there aspects that reflect Japan’s unique financial culture and regulatory philosophy?

Shigeru Ariizumi: As many regulators will probably say, we must strike the right balance between innovation and whatever mandate one has — whether it’s financial stability, investor protection or market integrity. We also look at both ends of the spectrum. But what I think might be somewhat unique for us is that we see the value of innovation as being emerging, something that evolves. In that sense, we are always mindful not to be too far ahead of the curve — because that would stifle innovation, and that’s not what we want. It’s not that we should be behind the curve, but we should be mindful not to be too ahead of the curve.