Japan has always been quick to adopt blockchain. Today, the Bank of Japan has launched a new blockchain settlement sandbox to test moving central bank reserve money on-chain. While no network has been officially chosen, Japan’s deep ties with Ripple and the XRP Ledger (XRPL) are drawing attention across global financial markets.
Governor of the BOJ, Kazuo Ueda, announced that the Bank of Japan will launch a sandbox program to test using blockchain for central bank money. The goal is to let banks move their reserve money on-chain using instant transfers and smart contracts.
This is not about retail crypto or public token trading. It involves real central bank money that commercial banks hold at the BOJ.
The sandbox program will reportedly test atomic transactions (instant and final settlement), smart contract functionality, artificial intelligence integration, and compatibility with BOJ-NET, Japan’s core interbank settlement system.
If successful, this could modernize how large financial transfers are processed in the country.
Japan has already been researching a digital yen under its central bank digital currency (CBDC) experiments. However, this new sandbox appears focused more on infrastructure efficiency rather than issuing a retail CBDC.
The development becomes more interesting when viewed alongside SBI Holdings’ long-standing relationship with Ripple. SBI, one of Japan’s largest financial groups, has owned roughly 9% of Ripple since 2016.
Over the years, SBI and Ripple have already been running cross-border payment services using the XRP Ledger (XRPL).
Meanwhile, SBI recently launched a ¥10 billion digital bond with XRP-linked incentives and signed an agreement to help distribute Ripple’s RLUSD stablecoin in Japan.
The Bank of Japan’s blockchain settlement testing does not confirm any specific ledger choice.
Perhaps, some market participants believe that if the Bank of Japan chooses a blockchain system in the future, it could be XRPL, since it is already connected to parts of Japan’s financial system.
Ripple CEO Brad Garlinghouse has previously praised Japanese policymaker Taira Masaaki for supporting blockchain growth.
He stated that Japan’s leaders are committed to advancing crypto and blockchain technology through clear regulatory frameworks.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The CLARITY Act was supposed to bring clear crypto rules, but it is now dividing…
Ethereum (ETH) price has slipped below the $1,900 mark after facing rejection near the $1,920…
Story Highlights The live price of Optimism is . OP could attempt a recovery toward…
Clarity Act news gained momentum after Fidelity urged the U.S. Senate to pass the legislation,…
The DEXE price has staged a sharp recovery after one of its steepest sell-offs, rebounding…
Ethereum has been selected by Fidelity as the blockchain for its first stablecoin, Fidelity Digital…
