BOJ explores tokenized central bank money as 2026 digital yen decision looms
The Bank of Japan is expanding blockchain settlement experiments while continuing retail CBDC pilots ahead of a potential 2026 decision.Summary
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)