The nine experts, who include academics, economists, a lawyer and a consumer group representative, will meet regularly, and compile a report by the end of this year.
Central banks around the world have scrambled to develop digital currencies to modernize financial systems and facilitate domestic and cross-border payments.
But Japan remains undecided on whether to issue a central bank digital currency (CBDC), and the BOJ has said the pilot programme may last for several years.
"We understand the BOJ's study is making a steady headway," a finance ministry official told reporters. "However, we have not at all decided on whether Japan will issue a CBDC."
The BOJ and Financial Services Agency will attend the panel sessions as observers.
(Reporting by Tetsushi Kajimoto; Editing by Simon Cameron-Moore)