Japan’s central bank is testing blockchain tech but has limited its work to research, according to one of its senior officials.
Governor Haruhiko Kuroda spoke earlier today during the Paris EUROPLACE Financial Forum in Tokyo. In remarks, he spoke about the opportunities and challenges regarding new kinds of technology in finance today.
Earlier this year, Kuroda speculated that blockchain could reshape some financial processes, and in May called on other central banks to pursue research efforts like the ones currently being undertaken by the Bank of Japan. Some of the world's central banks, including those in Canada, Singapore and the UK, have moved in the past year and half to explore possible applications in the areas of transaction settlement and financial monitoring.
Yet according to Kuroda, the Bank of Japan isn’t looking to apply the tech to its own operations, instead focusing squarely on research.
Kuroda told attendees:
Japan’s financial sector, on the other hand, is putting its past research into action.
Last week, several major Japanese banks released the initial results of an interbank payments trial. According to those involved, the prototype system used enabled cheaper transactions compared to existing methods, setting the stage for further research.
Correction: this article originally identified governor Haruhiko Kuroda as the deputy governor.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.