BOJ's Himino calls for 'holistic approach' on global monetary system

TOKYO - Bank of Japan Deputy Governor Ryozo Himino on Saturday called for a "holistic approach" in designing the global future monetary system that does not confine options to central bank digital currencies and stablecoins.

The U.S. prohibits the issuance of CBDCs and promotes stablecoins as a means to strengthen the dollar's position as a global key currency, while Europe is promoting a digital euro to overcome regional fragmentation in retail payment systems.

"Japan is prepared for both paths," having been a pioneer in introducing stablecoin legislation while advancing a pilot programme for CBDCs, Himino said.

But developments overseas suggest a holistic design is needed for the future monetary system that takes into account factors such as technical feasibility, social costs, user convenience, financial stability and monetary policy, he said.

"Options for the future monetary system are not limited to CBDCs and stablecoins," with other options available such as introducing tokenised bank deposits and central bank reserves operating on blockchain, Himino said in a speech at an annual meeting of the Japan Society for Monetary Economics.

The BOJ has begun a "sandbox project" to explore the technical feasibility of tokenising its reserves and using them for blockchain-based payment solutions, he added.

The BOJ manages interbank settlement, liquidity and monetary policy through commercial banks' reserve accounts held at the central bank.

Introducing blockchain technology to settle such reserves would allow scope for instant settlement 24 hours a day and reduce gridlock risk in stress events, analysts have said.

The BOJ began experiments for issuing a CBDC in 2021. While no decision has been made on whether to issue such a currency, the central bank started a pilot programme in 2023 for retail CBDC that would be distributed via private banks or payment firms.

Japan's government has also supported a project by major domestic banks to issue stablecoins that will be tested for use in cross-border payments.

(Reporting by Leika Kihara in Tokyo; Editing by William Mallard)

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This story was originally published May 16, 2026 at 1:35 AM.