It seems likely that the risks of such technology will be more prominent for this group, which is also charged with examining the tax, foreign exchange and credit creation issues arising from digital cash schemes. Within the IPA, there is a software technology center headed by Takashi Goto. The IPA and MITI, like MPT, have concluded that cryptographic technology is important for Japan's competitiveness as the Internet grows in importance and as electronic commerce increases. While MITI formally supports discussions of cryptography policy on an international basis, the Clipper Chip was highly unpopular in Japan for a variety of reasons. There's a strong antipathy to wiretaps among the Japanese people.
Wiretaps are lawful with a warrant, but remain controversial.
Therefore, the Clipper Chip's law enforcement rationale did not resonate in Japan. The Chip's use of a classified algorithm and the lack of technical controls on police or government access were also seen as significant failings in the system, according to MITI sources.