The Bank of Japan (BoJ) has begun experimenting with blockchain technology for integration into its financial infrastructure, as announced by the regulator's head, Kazuo Ueda.
A testing sandbox has already been launched, where the central bank is testing transactions in the form of deposits in current accounts using distributed ledgers.
Developers will assess how blockchain interacts with existing infrastructure, including the national financial network BOJ-NET. The primary focus of the tests is on domestic interbank transfers and securities settlements.
The Bank of Japan will involve independent experts in the project. Ueda emphasized that the initiative is purely technical and does not indicate any changes in the country's monetary policy. Data obtained from the experiments will also be used to enhance the BOJ-NET system.
The regulator's head added that integrating blockchain with artificial intelligence could improve financial services through detailed transaction analysis.
However, Ueda warned about the vulnerabilities of smart contracts, stating that errors in their code and architecture pose a direct threat to the stability of payment systems and financial markets.
Crypto Regulation
The launch of the central bank's testing platform comes amid a comprehensive overhaul of Japan's regulatory framework for digital assets. In 2025, the Financial Services Agency held consultations regarding the reclassification of cryptocurrencies "on par with securities."
The government has also included blockchain and tokenization in its broader economic growth strategy.
Furthermore, the integration of stablecoins is expanding in Japan. In October 2025, JPYC launched the country's first "stable coin" pegged to the yen.
It is worth noting that in August 2025, Japan's Finance Minister Katsunobu Kato supported investments in cryptocurrencies.