NEC signed a memorandum of understanding with Ava Labs on July 10 to jointly explore a decentralized digital identity infrastructure combining biometric authentication with Avalanche blockchain technology. The partnership aims to streamline identity verification, payments, and remittances for foreign visitors traveling to Japan, with the companies publishing a whitepaper describing the framework as the first outcome of their collaboration. The initiative targets Japan's goal of attracting 60 million foreign visitors annually by 2030, addressing the need for more efficient payment systems and identity verification in the country's growing tourism sector.
NEC and Ava Labs Publish FaceVC Framework for Biometric Payments
The whitepaper describes a system centered on a digital certificate called FaceVC, which users would obtain before arriving in Japan. The credential would be linked to facial recognition data and stored securely in a digital wallet. Travelers would authorize purchases through facial authentication, allowing stablecoin payments to be completed instantly while simultaneously receiving rewards based on traveler attributes.
FaceVC requires biometric verification both when the credential is stored in a digital wallet and when it is used for transactions. Personal information, including biometric data and purchase records, would remain under the user's control within the wallet. During payment or reward redemption, only the minimum amount of information required for the transaction would be disclosed.
Three-Blockchain Architecture Manages Identity and Transactions
The proposed infrastructure is built on three separate Avalanche blockchain networks, each assigned a specific operational role. A permissioned Avalanche Layer 1 network is intended to manage decentralized identifier documents and revocation information for verifiable credentials. A dedicated payment network called SETTL is expected to process stablecoin transactions, while Avalanche's public C-Chain would handle the issuance and circulation of reward tokens and non-fungible tokens.
These blockchain networks would communicate through Avalanche's Interchain Messaging protocol, enabling identity verification, payment settlement, and reward distribution to operate as an integrated ecosystem. The whitepaper outlined plans to validate a two-layer architecture combining NEC's identity management capabilities with Ava Labs' blockchain infrastructure.
Platform Expansion Targets Financial Institutions and AI Authentication
Beyond tourism services, NEC and Ava Labs plan to expand the platform into identity verification for financial institutions, cross-border payments, and authentication for AI agents while advancing proof-of-concept trials and commercialization efforts. The companies noted that blockchain technology has increasingly been adopted for financial applications, including stablecoins and on-chain payment systems.
The companies also stated that the growing use of artificial intelligence agents to execute transactions and contractual activities on behalf of individuals had increased the need for secure digital identity verification and fraud prevention.
Japan Tourism Growth Drives Digital Payment Infrastructure Demand
Japan has established a target of attracting 60 million foreign visitors annually by 2030. The companies indicated that if implemented successfully, the proposed model could simplify transactions for travelers while helping businesses reduce payment processing costs and make better use of customer data through secure digital credentials.
The companies acknowledged that widespread adoption would depend on strong safeguards for biometric data and public confidence in the security of the system. The pace of commercialization is expected to be influenced by evolving legal and regulatory frameworks governing stablecoins and digital payment systems, requiring technological development to progress alongside regulatory advancements.
FAQ
What did NEC and Ava Labs announce on July 10?
NEC signed a memorandum of understanding with Ava Labs on July 10 to jointly explore a decentralized digital identity infrastructure combining biometric authentication with Avalanche blockchain technology. The companies published a whitepaper describing a framework designed to streamline identity verification, payments, and remittances for foreign visitors traveling to Japan.
How does the FaceVC system work for payments in Japan?
FaceVC is a digital certificate users obtain before arriving in Japan, linked to facial recognition data and stored in a digital wallet. Travelers authorize purchases through facial authentication, allowing stablecoin payments to be completed instantly while receiving rewards based on traveler attributes. Personal information remains under user control, with only minimum required information disclosed during transactions.
What blockchain networks support the proposed platform?
The infrastructure uses three separate Avalanche blockchain networks: a permissioned Layer 1 network for decentralized identifier documents, a dedicated payment network called SETTL for stablecoin transactions, and Avalanche's public C-Chain for reward tokens and NFTs. These networks communicate through Avalanche's Interchain Messaging protocol.
