The Bank of Japan will conduct a blockchain-based central bank currency settlement trial.

PANews reported on March 3 that, according to Jinshi, Bank of Japan Governor Kazuo Ueda stated that, looking to the future, blockchain technology has the potential to develop into an infrastructure for transactions and settlements involving various assets and services (including delivery versus payment). To enable the development of a new era of financial ecosystems (characterized by new financial services arising from the integration of AI and blockchain), it is necessary to establish a mechanism to ensure the transparency and authenticity of transactions, particularly the security and robustness of payments. The Bank of Japan will conduct technical trials on a blockchain-based system for settlement using central bank currency in the form of demand deposits.