The Bank of Japan has announced plans to experiment with blockchain technology for settling reserve deposits held by financial institutions at the central bank.
Following this announcement, the Bank of Japan (BOJ) has announced it will conduct experiments to explore the use of blockchain technology for settling deposits that financial institutions hold in reserve accounts at the central bank, as part of a broader effort to evaluate distributed ledger infrastructure within the existing financial system.
The announcement was made in a speech titled 'The New Financial Ecosystem and the Role of Central Banks'. The experiments will sit within an ongoing BOJ 'sandbox project' designed to assess whether central bank money can support a wider range of blockchain-based settlements.