On Wednesday, July 3, 2024, Japan introduced new banknotes after 20 years. These notes feature three-dimensional portraits of the founders of financial and female education institutions to prevent counterfeiting.

The portraits generate holograms using printed patterns and can be seen from different directions based on the viewing angle. According to Japan’s National Printing Bureau, this technology is the world’s first for paper money.

The new 10,000-yen note depicts Eiichi Shibusawa, the founder of Japan’s first bank and stock exchange. The 5,000-yen bill features educator Umeko Tsuda, who established one of the first women’s universities in Japan, and the 1,000-yen bill showcases medical scientist Shibasaburo Kitasato.

Prime Minister Fumio Kishida mentioned that this transition comes as the economy moves into a growth-driven phase for the first time in thirty years. Key companies are increasing workers’ wages faster in 33 years. However, inflation and the weakening yen currency still impact consumption and business.

Though existing bills will remain in use, establishments like train stations, parking lots, and ramen shops are updating payment machines to support less cash usage and digital transactions. The government aims to digitise the economy. Japan detected 681 fake banknotes in 2023, significantly lower than the record high – 25,858 in 2004.

Authorities plan to print approximately 7.5 billion newly designed bills by the end of the current fiscal year, contributing to the 18.5 billion banknotes in circulation by December 2023.

Japan’s central bank governor, Kazuo Ueda, indicated that Cash remains a secure payment method despite the rise of alternatives.

The government disclosed that cashless payments in Japan have nearly tripled over the past decade, accounting for 39% of consumer spending in 2023. The Japan Vending Machine Manufacturers Association reported that most ATMs, train ticket machines, and retail cash registers are ready for the new bills.

Still, only half of the restaurant and parking ticket machines are. Additionally, almost 80% of Japan’s 2.2 million drink vending machines require upgrades.