Bank of Japan to test blockchain-based reserve settlement: Governor Ueda

Bank of Japan Governor Kazuo Ueda announced that the central bank will experiment with using blockchain technology for settling current account deposits, which represent reserves financial institutions hold at the BOJ. This move is part of adapting to a new financial ecosystem involving tokenization and programmability. The BOJ is developing a sandbox project to test central bank money on blockchain systems, aiming for more efficient interbank and securities settlement, potentially using smart contracts. Furthermore, the BOJ is participating in the BIS-led Project Agora, exploring tokenized central bank money for cross-border settlement streamlining. Separately, the BOJ continues its pilot program for a retail Central Bank Digital Currency (CBDC) and plans to broaden discussions beyond technical design.

(Source：The Block)