Will they be the currency suitable for the new era? It is hoped there will be a positive impact on the national economy.
It has been decided that the 1,000, yen 5,000 yen and 10,000 yen notes will be redesigned, and the government aims for the new banknotes to start to be issued in the first half of fiscal 2024.
It will be the first banknote redesign in 20 years, since one in 2004 under the Cabinet of Prime Minister Junichiro Koizumi.
The materials for the 500 yen coin will also be changed to give it two colors. It is said the new coin will go into circulation in the first half of fiscal 2021.
Counterfeiting technologies are advancing. It is appropriate to revamp banknotes and coins periodically. The government is urged to thoroughly implement anti-counterfeiting features.
Businessman Eiichi Shibusawa, who was involved in the founding of many companies and is known as the "father of Japanese capitalism," has been chosen for the portrait on the new 10,000 yen bill. This apparently reflects the government's aim to place importance on economic growth through fostering new industries.
The portrait on the 10,000 yen bill, which has the largest circulation, has not been changed since Yukichi Fukuzawa's picture appeared on it in 1984.
On the new 5,000 yen bill, Umeko Tsuda, a pioneer of women's higher education, will replace Ichiyo Higuchi, and the new 1,000 yen note will show bacteriologist Shibasaburo Kitasato, replacing Hideyo Noguchi. This can be viewed as the government's message highlighting the importance of women playing active roles and of science and technology.
Watch for possible fraud
The new banknotes will introduce the advanced technologies of high-definition watermarks that can be viewed when the notes are held up to the light and holograms in which images change depending of the viewing angle.
Larger font sizes will be used for numerals showing the value of the bills for easy reading. Further means are required to make the new bills easy to use.
In the previous banknote redesign, the circulation of new bills started about two years after their announcement, but this time there will be a five-year period until new issuance.
From now on, automatic teller machines and vending machines will have to be adapted for the new bills. It is understandable to try to avert confusion by having a long preparation period.
Shouldn't the government consider measures to lower the burdens on financial institutions and other entities?
The issuance of new banknotes may spur special demand for such companies as vending machine manufacturers. According to one estimate, the new issuance will push up the gross domestic product by about 1.3 trillion yen.
Compared to people overseas, Japanese still have strong cash-oriented mind-set. According to the Bank of Japan's Flow of Funds Accounts statistics, cash held by households stands at 92.7 trillion yen, up by nearly 20 trillion yen in five years. Most of it is believed to be "savings under the mattress."
If the new issuance leads to moves to exchange old bills for new ones, such household savings would become "live money" for such uses as investment, possibility leading to revitalization of the economy.
The current bills and 500 yen coins will continue to be usable, but it is possible that frauds based on falsehoods such as "old notes will no longer be valid" may spread. The government should raise its vigilance.
(From The Yomiuri Shimbun, April 10, 2019)
Read more from The Japan News at https://japannews.yomiuri.co.jp/
