Japan Moves to Create Real-Time Blockchain-Based Payment System
The Japanese government and the Bank of Japan are working together to create a next-generation payment infrastructure that uses blockchain technology. The goal is to enable immediate settlement of government bonds and stocks, regardless of time or location.
A committee consisting of representatives from the Ministry of Finance, the Financial Services Agency, the Bank of Japan, and financial institutions will be established in the summer to discuss the details of the project. The committee aims to finalize a plan for implementing the new payment system by early 2027.
The current settlement process for government bonds and stocks takes several days, but with the new blockchain-based system, transactions can be settled in real-time. This will enable investors to immediately use the funds from their sold securities for other investments.
Japan's three megabanks and a major securities company have already been experimenting with using blockchain technology in securities trading.