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At the FIN/SUM2026 conference, Bank of Japan Governor Kazuo Ueda revealed a new blockchain sandbox project to experiment with settling central bank money, including interbank transfers and securities, using distributed ledger technology. The initiative aims to enable 24/7 instant settlement, improve efficiency, and explore tokenization, while managing risks such as smart contract vulnerabilities. It connects to international efforts such as Project Agorá, where central banks test tokenized deposits for cross‑border payments. The move positions Japan to balance innovation with financial stability as digital finance evolves.
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