A revolutionary step by the Bank of Japan: Launching a 24/7 blockchain-based payment experiment

This marks a historic turning point in the Japanese financial system. The Bank of Japan (BOJ), in an announcement by Governor Kazuo Ueda on March 3, 2026, will test real-time, 24/7 settlement of (reserves) of current accounts held by banks at the central bank using blockchain technology. This initiative is a key part of the "sandbox" project that pushes the boundaries of traditional financial infrastructure and has the potential to shape future payment systems.
Today’s financial system typically limits interbank transfers and securities settlements to business hours and holidays. This can lead to liquidity shortages and the risk of "bottlenecks," especially during periods of economic stress. The experiment launched by the Bank of Japan aims to address these issues specifically: thanks to blockchain-encoded reserves, transactions can now be completed almost instantly, day and night, including weekends and public holidays. This will fundamentally improve liquidity management for financial institutions and significantly reduce systemic risks.
The project advances within the framework of the Bank of Japan’s current "sandbox" studies. Testing will continue, starting with the development of a prototype in Q2 2026, with real-world trials involving selected financial institutions throughout 2027. Results are expected to be publicly released in early 2028. During the trials, critical elements such as how to integrate blockchain infrastructure with the existing BOJ-NET system, security levels, transaction speed, and cost-effectiveness will be carefully examined.
In his speech, Governor Ueda emphasized that blockchain technology is not just a tool for innovation but can also become the foundational infrastructure of the next-generation financial system while maintaining the "trust anchor" role of the central bank’s money. The project particularly focuses on use cases such as interbank payments and securities settlements (DVP - Delivery Versus Payment). The studies, conducted with the participation of external experts, will test the practical application of the technology and its compatibility with current systems.
This step makes Japan the first G7 country to test central bank reserves on blockchain technology. It also strongly demonstrates Japan’s ambition in the digital transformation race among the world’s leading central banks.
The Bank of Japan’s bold experiment could serve as a catalyst not only for the Japanese financial system but also for the global monetary system and payment environment. By opening the door to a 24/7 real-time settlement era, this project is expected to be remembered as one of the most tangible examples of bridging the gap between traditional finance and the blockchain world.
The future financial architecture in Japan is now taking shape.