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Governor of the Bank of Japan suggested utilizing blockchain for payment transactions., 2026/03/03 14:33:45
The Governor of the Bank of Japan, Ueda Kazuo, has suggested conducting financial transactions via blockchain and utilizing central bank digital currencies (CBDCs) from partner nations for international settlements. He believes this could positively transform the global financial system.
Speaking at the FIN/SUM 2026 conference in Tokyo, Kazuo acknowledged that blockchain is increasingly being utilized in traditional settlements, payments, and international money transfers—thanks to decentralized finance (DeFi), smart contracts, and tokenized assets, these processes can be executed more swiftly and cost-effectively. The programmability of blockchain, particularly atomic transactions that consolidate multiple actions into a single execution, can simplify complex financial operations, stated the central bank head. He cited the “delivery versus payment” (DvP) method, where assets are transferred to the buyer only after the seller receives the funds, as well as cross-border transfers that can occur instantaneously via blockchain without disruptions.
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However, Kazuo believes that in a fragmented ecosystem comprising various incompatible blockchains and traditional payment systems, challenges may arise during currency conversion. To address potential complications, the senior official proposed the adoption of CBDCs, which could serve as a universal bridge between different blockchains. According to Kazuo, this approach would uphold the principle of “monetary unity” while simultaneously accelerating the advancement of technological innovations.
Kazuo mentioned that the Bank of Japan is testing its own digital currency and is also participating in the Project Agorá pilot initiative alongside other central banks and major financial institutions, exploring the possibilities of tokenized deposits. The head of the Japanese central bank expressed support for artificial intelligence, which he believes will enhance risk management and strengthen compliance with anti-money laundering (AML) regulations.
Last year, Japan’s Financial Services Agency (FSA) proposed classifying cryptocurrencies as financial products to apply a fixed tax rate of 20% to them.
