TOKYO: The Bank of Japan has launched a joint study with overseas central banks to explore the possibilities of utilizing digital currencies.

The banks have created a group to look into potential cases of digital currencies issued by central banks, hoping to share knowledge about related technical issues and such currencies' economic implications, the BOJ said Tuesday.

The international initiative brought together the BOJ, the European Central Bank and the central banks of Britain, Canada, Sweden and Switzerland, as well as the Bank for International Settlements.

The BOJ and the ECB have already embarked on joint research to apply blockchain technology, which is in the foundation of existing cryptocurrencies including bitcoin, to interbank settlement.

Elsewhere in the world, China's central bank is considering issuing a digital currency, while US-based social media giant Facebook Inc. is planning to float the Libra cryptocurrency.

JIJI Press