New Japanese banknotes of ¥1,000, ¥5,000 and ¥10,000

New Banknotes Mark Japan’s Blend of Tradition and Innovation

The Bank of Japan has issued new editions of the ¥1,000, ¥5,000 and ¥10,000 banknotes with updated designs and historical figures. The new notes feature anti-counterfeit technology and 3D holographic images for an updated aesthetic and enhanced security. Advances in printing technology have also allowed for tactile features and larger numbering, improving accessibility for people with visual impairments.

The Bank of Japan and the Finance Ministry print new banknotes every 20 years to deter counterfeiters. When new banknotes were last issued, in 2004, about 60% of Japan’s old banknotes were replaced within a year. According to the Ministry of Finance and the Bank of Japan (central bank), the banknotes printed in 2004 will remain in circulation as the new notes are introduced. However, the central bank is actively replacing old notes with new ones as they return to the banking system, ensuring a relatively quick turnover. The latest banknotes are expected to become widely circulated within a few years, and the central bank has already prepared around 5 billion notes to aid this transition.

Japan is a place where robots serve lunch and yet fax machines are still widely utilized. This juxtaposition of traditional values and cutting-edge technology contributes to Japan’s distinctive allure. Japan pioneered mobile wallet technology with the introduction of FeliCa chips in smartphones, but many Japanese businesses continue to operate on a cash-only basis.

Man uses phone for touchless payment at Japanese automatic ticket gate

As of this summer, nearly 90% of businesses are ready to accept the new banknotes, with about 10% of businesses transitioning to cashless payments. The government is exerting more pressure on businesses to adopt e-commerce and cashless payment technology, and the introduction of new banknotes is helping to incentivize this shift. Coupled with changing demographics, this is leading Japan toward a future where more than half of the population is expected to use e-commerce payment methods by 2028. 

Statistics from Nikkei Asia reveal a substantial shift to electronic payment methods in 2022 which accounted for one-third of Japan’s consumption, a 17% increase from the previous year. QR code payments increased by 50% while debit and credit card transactions increased by nearly 20%. Still, Japan comes in last when compared to the percentage of digital payments used in Western countries and Asian countries such as China, Singapore and South Korea. 

Even with Japan slowly making the shift to e-commerce, be sure to look out for the new historical figures on the ¥1,000, ¥5,000 and ¥10,000 banknotes. The new ¥1,000 note, formerly depicting bacteriologist Hideyo Noguchi, features Kitasato Shibasaburo, a bacteriologist known for his significant contributions to tetanus therapy and antitoxins. The ¥5,000 note, previously featuring Higuchi Ichiyo, Japan’s first female professional writer, now displays Umeko Tsuda, a prominent advocate for women’s education and founder of Tsuda University. The ¥10,000 note, which once featured philosopher and writer Yukichi Fukuzawa, now showcases Shibusawa Eiichi, known as the father of Japanese capitalism for his ethical banking reforms. 

Hands exchange a new ¥10,000 banknote featuring Shibusawa Eiichi

The historical figures featured on each of these banknotes have heavily impacted Japan’s history and culture by their Western influence. These choices allude to the country’s tendency to be forward-thinking and embrace new practices, while remaining careful and meticulous about the incorporation. As demonstrated by the gradual transition to e-commerce, Japan continues to integrate external methods at its own pace and remains a leader of innovation.

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