The post Bank of Japan Launches Blockchain Settlement Sandbox, XRP Ledger be Chosen? appeared first on Coinpedia Fintech News
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.
BOJ Tests On-Chain Settlement for Reserve Deposits
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.
Ripple Already Active in Japan’s Blockchain Ecosystem
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.
Bank of Japan Might Choose XPR Ledger
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.
