The Bank of Japan will begin testing blockchain technology to facilitate the settlement of deposits held by financial institutions at the central bank, aiming to enable 24/7 instant settlement and mitigate gridlock risk during stressful events. This initiative is part of the Bank’s ongoing efforts to modernize wholesale payments through distributed ledger technology pilots, which reflects a broader trend of global central banks exploring the tokenization of central bank money to enhance cross-border payment efficiency.
Bank of Japan experiments with blockchain for round-the-clock deposit settlements
