Japan is considering utilizing Ripple's XRP Ledger (XRPL) to develop a zero-knowledge identity system, potentially transforming XRPL into a key component of its tokenized economy. This initiative aims to enhance privacy and security by allowing users to verify their identities without disclosing sensitive information. The move could elevate XRPL from a payment platform to a government-grade digital infrastructure, supporting identity verification, compliance, and asset transfers. Japan's government and major banks are already testing blockchain-based asset issuance, positioning this project as a potential global model for blockchain-based digital identity systems.