Japan’s Technological Leap in Currency Security
TOKYO, July 3 (Reuters) – In a groundbreaking move to combat counterfeiting, Japan has introduced its first redesigned banknotes in two decades, featuring pioneering three-dimensional holographic portraits of luminaries who shaped the nation’s financial and educational landscapes.
Revolutionary Holographic Technology
These state-of-the-art banknotes employ a revolutionary printing technique that generates dynamic holograms of the portraits, shifting their orientation depending on the viewing angle. The National Printing Bureau of Japan proudly proclaims this technology as a world first for paper currency.
Celebrating Icons of Progress
Prime Minister Fumio Kishida, at an unveiling ceremony, emphasized the significance of the figures chosen for the new currency, stating, “The faces of those who represent Japan’s capitalism, women’s empowerment, and technological innovation grace these new bills.”
Economic Growth and Challenges
This momentous release coincides with Japan’s economy entering a growth-driven phase for the first time in three decades. However, despite companies raising wages at a remarkable pace, persistent inflation, exacerbated by the yen’s weakening, continues to dampen consumer spending and business sentiment.
Embracing the Digital Age
While the existing banknotes will remain in circulation, Japan is actively encouraging a transition towards a more digitized economy. Train stations, parking lots, and even ramen shops are adapting their payment systems to accommodate this shift.
Iconic Figures on Display
The new 10,000-yen note pays homage to Eiichi Shibusawa (1840-1931), a titan of Japanese industry, renowned as “the father of Japanese capitalism.”
The 5,000-yen note celebrates Umeko Tsuda (1864-1929), a trailblazing educator who founded one of the first women’s universities in Japan.
The 1,000-yen note honors Shibasaburo Kitasato (1853-1931), a pioneering medical scientist.
Counterfeiting Remains Low
Although Prime Minister Kishida touted the advanced anti-counterfeiting measures, counterfeiting in Japan remains a minor concern. In 2023, authorities detected a mere 681 counterfeit banknotes, a substantial decrease from the peak of 25,858 in 2004.
Balancing Tradition and Innovation
Governor Kazuo Ueda of the Bank of Japan affirmed the continued importance of cash, stating, “Cash is a secure means of payment that can be used by anyone, anywhere, and at any time, and it will continue to play a significant role.” Nevertheless, the Bank of Japan is actively exploring digital currencies, although a decision on issuing a digital yen has yet to be made.
Adapting to the New Currency
The first currency redesign since 2004 has prompted businesses to upgrade their payment machines to cater to customers’ preference for cash. Despite the growth of cashless payments, reaching 39% of consumer spending in 2023, Japan still lags behind global counterparts. The government aims to increase this figure to 80% to enhance productivity.
Challenges and Opportunities
While most ATMs and retail cash registers are equipped for the new banknotes, only half of restaurant and parking ticket machines have been upgraded, according to the Japan Vending Machine Manufacturers Association.
Takemori Kawanami, an executive at ticket machine company Elcom, acknowledged the slower-than-expected upgrade process, attributing it to component shortages due to higher-than-anticipated demand.
Some small business owners, already grappling with inflation, express frustration at the additional investment required for upgrading payment machines. Shintaro Sekiguchi, who owns three ramen shops in Tokyo, spent around 600,000 yen on new ticket machines.
Key Takeaways:
| Key Learning Points | Description |
|---|---|
| Technological Innovation in Currency | Japan unveils banknotes with holographic portraits, a world first, to deter counterfeiting. |
| Celebrating National Icons | The new banknotes honor individuals who made significant contributions to Japanese society. |
| Balancing Tradition and Progress | Japan seeks to digitize its economy while recognizing the continued importance of cash. |
| Challenges of Transition | Upgrading payment systems and infrastructure to accommodate the new banknotes poses challenges for businesses. |
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