BOJ plans to test blockchain-based settlement for reserves, Governor Ueda announces

Bank of Japan to Test Blockchain for Central Bank Deposits

Governor Kazuo Ueda announced that the Bank of Japan is preparing to launch trials utilizing blockchain technology to manage deposits held by financial institutions at the central bank. These trials are part of an ongoing "sandbox project" designed to explore how central bank funds can be used for various settlement processes through blockchain innovation.

In his address, "The New Financial Ecosystem and the Role of Central Banks," Ueda emphasized the bank's commitment to advancing these initiatives. He noted that, with input from external specialists, the BOJ will investigate ways to integrate blockchain with current financial systems and will assess potential applications, including domestic interbank settlements.