BOJ explores tokenized central bank money as 2026 digital yen decision looms

The Bank of Japan (BOJ) announced an expansion of its blockchain experimentation for settling central bank reserves, which Governor Kazuo Ueda stated involves technical testing on a system using current account deposits on a blockchain. This project aims to explore connections with existing systems and use cases like domestic interbank and securities settlement, potentially offering instant, 24/7 settlement. Concurrently, the BOJ confirmed that efforts for a retail Central Bank Digital Currency (CBDC) are ongoing through a pilot program, with a decision on issuing a digital yen expected around 2026. Ueda also mentioned "Project Agorá," an international experiment exploring tokenized central bank deposits on the blockchain for wholesale use, which could streamline cross-border payments. Unlike a retail CBDC for the public, tokenized deposits would be wholesale money used by financial institutions on blockchain infrastructure.

(Source：CoinDesk)