Last month, the Bank of Japan released new banknotes, and events were held in regions like Niigata to attract elementary school students to appreciate their design. The new banknotes have become a hot commodity in the auction market, fetching prices six times higher than their face value, generating significant online discussion.
Currently, cashless transactions are rapidly gaining momentum in Japan, but the acceptance of the new banknotes has been low, leading to circulation issues, which may indicate the end of the paper currency era. The bottleneck lies in the slow pace of electronic equipment upgrades, with low compatibility rates in vending machines. Some businesses, like a laundry shop in Shinjuku, have seized the opportunity presented by the high cost of handling the new banknotes to eliminate cash transactions altogether, promoting cashless payments and pushing society towards a non-cash transaction model. This phenomenon not only reflects the challenges of technological adaptation but also foreshadows a profound transformation in payment methods, accelerating the arrival of the cashless era. The entire nation is gradually adapting to and embracing this payment revolution.
Officials from the Bank of Japan have cautiously responded to the lukewarm reception of the new banknotes, emphasizing that the core focus is on innovating currency printing technology to enhance security features. Nomura Research Institute economist Takeo Kiuichi pointed out that as the shift towards cashless payments accelerates, the circulation speed of paper currency will decline, making the new banknotes possibly the last generation of widely circulated paper money, carrying historical significance.
The unique serial numbers on the new banknotes have fueled a strong interest in collecting among the public. In Fukaya City, Saitama Prefecture, residents lined up in long queues to exchange for the new notes. Professor Nakajima from Reitaku University believes that while paper currency won’t disappear entirely, the number of users will decrease, and this issuance of new banknotes could mark a significant update in the era of paper money.
While it’s essential to recognize the presence of electronic payments, which have greatly improved payment efficiency, reduced transaction costs, and brought considerable convenience to people’s lives, the challenges in circulating the new banknotes shouldn’t be ignored. The current lag in electronic equipment is one of the reasons for the slow circulation of the new currency. Widespread compatibility of cash-handling equipment
with the new banknotes may require collaboration with equipment suppliers and necessary technical improvements to internal systems, ultimately providing users with a better experience.
