These avant-garde notes employ printed patterns to create holograms, which shift the orientation of the portraits based on the viewing angle, showcasing a pioneering technology claimed by Japan’s National Printing Bureau to be the world’s first for paper currency.
“Figures emblematic of Japan’s capitalist spirit, women’s empowerment, and technological innovation grace the new currency,” declared Prime Minister Fumio Kishida at the unveiling ceremony. This initiative coincides with the nation’s transition into a growth phase unseen in the past thirty years, he added.
Despite a surge in wages by key corporations, reaching the highest rate in 33 years, the economy is grappling with stubborn inflation and a depreciating yen, factors that continue to dampen consumer spending and business sentiment, as recent economic indicators reveal.
While existing banknotes will remain valid, a race is on for train stations, parking facilities, and ramen eateries to upgrade their payment systems. This is part of a broader governmental push to reduce cash usage and propel the digitization of the economy.
The newly issued 10,000-yen ($62) note features Eiichi Shibusawa (1840-1931), revered as the progenitor of Japanese capitalism, having established the first bank and stock exchange. The 5,000-yen note honors Umeko Tsuda (1864-1929), a pioneer in women’s education who founded one of Japan’s first women’s universities. The 1,000-yen note celebrates Shibasaburo Kitasato (1853-1931), a luminary in medical science.
While Prime Minister Kishida extolled the advanced anti-counterfeiting measures, counterfeiting remains a minor issue in Japan, with only 681 counterfeit notes detected in 2023, a stark decline from the peak of 25,858 in 2004.
The authorities plan to circulate approximately 7.5 billion newly designed banknotes by the conclusion of the current fiscal year, supplementing the 18.5 billion banknotes, valued at 125 trillion yen, in circulation as of December 2023.
“Cash remains a reliable medium of exchange, accessible universally and continuously, and it will sustain its pivotal role despite the advent of alternatives,” asserted Kazuo Ueda, the governor of the central bank. Although the Bank of Japan has experimented with digital currencies, the government has yet to decide on issuing a digital yen.
‘No Sales Impact’
The first overhaul of paper currency since 2004 has spurred enterprises to modernize payment systems for their cash-preferential clientele.
Despite the near tripling of cashless payments in Japan over the past decade, accounting for 39% of consumer expenditures in 2023, the figure still lags behind global counterparts. The government aims to elevate this to 80% to enhance productivity.
Nearly 90% of bank ATMs, train ticket dispensers, and retail cash registers are equipped for the new bills, but only half of restaurant and parking ticket machines are prepared, according to the Japan Vending Machine Manufacturers Association.
Furthermore, about 80% of the nation’s 2.2 million beverage vending machines also require updates, the association reported.
“It may take until the year’s end to adapt,” stated Takemori Kawanami, an executive at ticket machine firm Elcom. “That’s too slow, but we’re experiencing a shortage of components,” he added, noting that client demand for upgrades has surpassed expectations.
Many Japanese fast-food establishments, including ramen shops and beef bowl outlets, utilize ticket machines to minimize labor costs. However, some small business proprietors, already contending with inflation, are discontent with the additional investment required.
“The replacement of machines has no positive effect on sales; it’s purely a financial burden, compounding the rising costs of labor and ingredients,” lamented Shintaro Sekiguchi, who invested approximately 600,000 yen for ticket machines across his three ramen shops in Tokyo.
