Japan to Develop Blockchain Platform for Wholesale CBDC Settlement
The Bank of Japan and the Japanese government are teaming up to develop a blockchain platform for real-time settlement of government bonds and stocks. The goal is to use a wholesale central bank digital currency (CBDC) for this purpose.
A new working group has been formed, involving the Bank of Japan, the Financial Services Agency, the Ministry of Finance, and financial institutions. This group will select the technology, decide on the split of work between agencies and private sector, and define the work processes.
The Bank of Japan was one of the earliest central banks to explore CBDCs, but its focus has shifted from retail to wholesale in recent years. The BOJ is now looking to launch a wholesale CBDC for securities settlement by the early 2030s.