Bank of Japan Advances Sandbox Tests for Central Bank Money Settlement on Blockchain

The Bank of Japan is assessing whether reserves held by financial institutions at the central bank can be tokenized and used as a final settlement asset on blockchain networks. The initiative could affect interbank payments and delivery-versus-payment securities settlement while addressing the limitations of systems that do not operate around the clock. Japan is also participating in Project Agorá, an initiative led by the Bank for International Settlements and the Institute of International Finance that connects seven jurisdictions.

BOJ Governor Kazuo Ueda said at FIN/SUM 2026 on March 3, 2026, that the central bank had launched a sandbox to test links between reserves and BOJ-NET, as well as interbank and securities settlement. The program has not disclosed a test amount or launch timetable. Project Agorá completed its prototype and initial testing on June 11, with more than 40 private-sector financial institutions participating, and will next conduct tests using actual amounts.