By Irene Wang and Kantaro Komiya
TOKYO (Reuters) – Japan on Wednesday put into circulation its first new banknotes in 20 years, featuring holograms of founders of women’s financial and educational institutions in a bid to thwart counterfeiters.
The banknotes use printed patterns to create 3D images of people facing different directions, depending on the viewing angle, using a technology that Japan’s National Printing Agency says is a world first for paper money.
While existing bills are still in use, train stations, parking lots and ramen shops are working hard to upgrade payment machines as the government pushes consumers and businesses to use less cash in an attempt to digitize the economy.
The new 10,000 yen ($62) note depicts Eiichi Shibusawa (1840-1931), founder of the first bank and stock exchange, who is often called the “father of Japanese capitalism.”
The new 5,000-yen note features a portrait of teacher Umeko Tsuda (1864-1929), who founded one of Japan’s first women’s universities, while the 1,000-yen note features pioneering medical scientist Shibasaburo Kitasato (1853-1931).
The monetary authorities plan to print about 7.5 billion new banknotes by the end of the current fiscal year. These banknotes will be added to the 18.5 billion banknotes worth 125 trillion yen already in circulation as of December 2023.
“Cash is a safe means of payment that can be used by anyone, anywhere, at any time, and it will continue to play an important role” even when alternative payment methods prevail, Bank of Japan Governor Kazuo Ueda said at a ceremony on Wednesday to celebrate the new banknotes.
The central bank is experimenting with digital currencies, but the government has not made any decisions on issuing a digital yen.
“No impact on sales”
The first paper currency revamp since 2004 has encouraged businesses to upgrade payment machines for cash-loving customers.
Although cashless payments in Japan have nearly tripled over the past decade to account for 39% of consumer spending in 2023, that share is lower than global peers and should rise to 80% to improve productivity, the government says.
The Japan Vending Machine Manufacturers Association says about 90 percent of bank ATMs, train ticket machines and retail checkout counters are ready to accept the new notes, but only half of restaurant and parking ticket machines are ready.
She added that nearly 80% of the 2.2 million beverage vending machines across the country also need updates.
“It may take until the end of the year to respond to this. It’s very slow, but we are running out of components,” said Takemori Kawanami, an executive at ticket machine company Elcom, as customer requests for updates exceeded expectations.
Many Japanese fast-food restaurants, such as ramen shops and beef bowl shops, rely on ticket machines to cut labor costs, but some small business owners struggling with inflation are unhappy with the extra investment the new bills would require.
“Replacing the machines has no impact on sales, so it’s just a negative for us, in addition to the higher costs of labor and ingredients,” said Shintaro Sekiguchi, who has spent about 600,000 yen on ticket machines at three ramen shops he runs in southern Tokyo.
With the growth of cashless payments, Sekiguchi longed for a sophisticated device that could provide customers with different payment options, but he could only afford cash-only equipment.
“Our ramen unit prices aren’t high, so running the store for a day or two will barely cover the replacement cost,” he added.
(1 dollar = 161.6500 yen)