MNI BRIEF: BOJ's Ueda Reveals Blockchain Settlement Project

The Bank of Japan has launched a sandbox project to explore the use of central bank money for a broad range of settlements on blockchain-based systems, said Governor Kazuo Ueda.  

“In this experimental project, the Bank will conduct technical experimentation on settlement using central bank money in the form of current account deposits on a system that uses blockchains,” Ueda said at FIN/SUM 2026.

“We intend to make further progress while gaining the support of external experts, exploring methods of connection with the existing system as well as examining use cases such as domestic interbank settlement and securities settlement,” he added.

Ueda also referred to Project Agorá, describing it as an international experimental initiative bringing together multiple central banks and major private-sector financial institutions.

“Participants in this project, with a view to processing cross-border payments between banks, are considering building a mechanism that would enable central banks, including the Bank of Japan, to issue central bank money as tokenized deposits on the blockchain. Smart contracts can also be utilized for tokenized deposits. If this project comes to fruition, it may bring innovation in terms of streamlining cross-border payments,” he said.

Ueda did not comment on the economic outlook amid growing geopolitical risks following U.S. attacks on Iran, nor did he address the stance of monetary policy.