BOJ Tests Blockchain for Bank Reserve Settlement

The Bank of Japan (BOJ), led by Governor Kazuo Ueda, is running a technical sandbox project to test settling financial institutions' current account deposits at the central bank using blockchain technology. The experiments will explore connections with existing systems like BOJ-NET and examine use cases such as domestic interbank and securities settlement. Ueda noted that integrating AI and blockchain could enhance financial services, but he also cautioned about design risks associated with inadequate smart contracts threatening financial stability. This initiative aligns with Japan's broader strategy to modernize finance, including refining digital asset regulations and expanding stablecoin integration at the private sector level.

(Source：Cointelegraph)