Advanced Payments Of The Japan Financial Services Agency: Press Conference By KATAYAMA Satsuki, Japan Minister Of Finance And Minister Of State For Financial Services

[Opening remarks:]

Minister)

Today, I would like to announce that we have decided to support the third project under the PIP, which is the initiative on advanced payments of the Financial Services Agency (FSA). When tokenized deposits are transferred between customers of different banks, an interbank funds settlement system that connects those banks is required. This project is a demonstration experiment aimed at facilitating such interbank settlements. Regarding this facilitation of interbank settlements, as Governor Ueda of the Bank of Japan (BOJ) has recently stated, I understand that the BOJ will conduct its Sandbox Project, under which current account balances at the BOJ will be converted into tokens and utilized. The FSA and the BOJ will work closely together, sharing information and expertise on the progress of each other’s experiments. Since I was Chairperson of the Financial Research Council, the use of this type of blockchain technology has progressed gradually. The FSA and the BOJ have now come into alignment. In the past, CBDC itself was not necessarily considered part of blockchain-based technology. While there is a difference between simple electronic payments and systems that incorporate blockchain technology, tokenized deposits do make use of blockchain. Globally, including in the United States, there is an intense debate over whether future payment systems should rely on stablecoins or on tokenized deposits. We intend to work proactively to remain at the forefront of technological developments in both areas.