Bank of Japan testing blockchain settlement for bank deposits in new sandbox

BOJ Governor Kazuo Ueda said the experiments will examine links between blockchain systems and Japan’s existing settlement infrastructure.

The Bank of Japan will conduct technical experiments using blockchain technology to settle deposits held at the central bank by financial institutions, according to BOJ Governor Kazuo Ueda. 

In a speech posted Tuesday titled “The New Financial Ecosystem and the Role of Central Banks,” Ueda said a sandbox project is underway to test settlement using central bank money “in the form of current account deposits on a system that uses blockchains.”

The experiments will explore “methods of connection with the existing system” and examine use cases, including “domestic interbank settlement and securities settlement.”

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