Bank of Japan Explores Blockchain for Current Account Funds

• Japan’s Central Bank plans to digitize some of its current account deposits.
• The BOJ’s Governor says he will technically verify the current account digitization process.
• The BOJ is piloting CBDC experiments targeting the general public.

The Bank of Japan (BOJ) is planning to digitize some of its current account deposits using blockchain technology. Speaking at the fintech comprehensive event “FIN/SUM/2026,” BOJ Governor Kazuo Ueda stated that he would verify the process of implementing current account digitization and enable actual payments.

Moving Beyond Research to Implementation

Beyond a regular research exercise, users consider the BOJ’s plan an attempt to examine whether central bank funds can be restructured to suit the new technological environment. In the meantime, Ueda acknowledged blockchain technology’s encroachment into the real world, noting that it has entered the “implementation phase” in financial services.

Ueda further noted that generative artificial intelligence (AI) is rapidly developing. According to him, AI and blockchain technology are creating a new financial ecosystem. Therefore, the planned restructuring could allow international remittances that usually pass through multiple financial institutions to be processed via a single channel.

Security and System Interoperability

Additionally, Ueda noted that the proposed system will enable precise detection of transactions suspected to be linked to money laundering. Meanwhile, he emphasized that increasing transaction volumes would require devices that ensure payment security and system stability. Hence, “safe design” must be considered as a crucial element while pursuing innovation in the financial sector.

In the meantime, Governor Ueda reassured the public of the BOJ’s role in maintaining a stable financial ecosystem. According to him, central bank money, such as cash and BOJ current deposits, serves as a final settlement asset and an anchor of trust for the economic system. He noted that linking potential digital payment systems and making them interoperable with the central bank will boost users’ trust in the overall financial system.

Meanwhile, the BOJ is piloting CBDC experiments targeting the general public. One of the BOJ’s plans is to reorganize the CBDC Forum to reflect the technologies and opinions of private companies. 

Related: Bank of Japan Holds Rates at 30-Year High as Debt and Yen Risks Loom for Crypto