The Bank of Japan will test whether central bank reserves can operate on blockchain-based systems, Governor Kazuo Ueda said during remarks at a financial conference in Tokyo. The initiative includes a sandbox project focused on current account deposits held by financial institutions at the central bank.
Ueda said the BOJ aims to assess how tokenization and programmability could improve domestic interbank transfers and securities settlement. The bank plans to work with external experts to examine integration with existing infrastructure and evaluate use cases tied to wholesale financial markets.
The effort aligns with international coordination through Bank for International Settlements-led initiatives such as Project Agora, which explores cross-border settlement using tokenized central bank money. Separately, the BOJ continues its retail CBDC pilot, reflecting Japan’s incremental approach to digital currency development within a broader regulatory modernization framework.
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