Bank of Japan to Test Blockchain Settlement for Bank Reserves — Here’s Why It Matters
The Bank of Japan will test settling bank reserves using blockchain technology to enable 24/7 instant settlement.Summary
The Bank of Japan (BoJ) announced sandbox experiments, starting in 2026, to test settling bank reserves (deposits financial institutions hold at the BoJ) using blockchain technology. This initiative moves beyond prior CBDC trials to test integration with core financial infrastructure, aiming for 24/7 instant interbank and securities settlement, which could reduce liquidity strains currently caused by limited operating hours. Governor Kazuo Ueda stated the goal is to explore connections with existing systems like the BoJ-NET network. By tokenizing reserves, the BoJ seeks to preserve central bank money as the "anchor of trust" in an increasingly tokenized financial landscape, focusing on modernizing wholesale settlement rather than issuing a retail CBDC. This cautious step aligns with Japan's broader regulatory approach to digital assets.
(Source：CCN)