🕓 2024/9/01
#culture
Detailed explanation about money in Japan
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table of contents
- Types of Japanese yen
- History of the Japanese Yen
- How to use Japanese banks and ATMs
- Types of payment methods in Japan
Introduction
Japan is a country with a long history and rich culture, and the Japanese yen (JPY) has played an important role as the foundation of the domestic economy. In this article, we will explain in detail the types of Japanese yen, their characteristics, and the history of how the Japanese yen developed.
We will also introduce the various payment methods used in Japan and help you understand the convenience and appropriate usage of each.
1. Types of Japanese Yen
The Japanese yen (JPY) is Japan’s currency and is divided into two types: banknotes and coins. These are issued by the Bank of Japan and are used for all domestic transactions.
■ Banknotes (banknotes)
There are currently four types of Japanese yen banknotes in circulation:
・10,000 yen banknote
・Overse: Yukichi Fukuzawa
・Back side: Byodoin Phoenix Hall
・Dimensions: 76mm x 160mm
・Features: This is the highest denomination banknote and features a portrait of Yukichi Fukuzawa. He was a prominent thinker during the Meiji period and is also known as the founder of Keio University. He spread Western knowledge to Japan and had a great influence on modern Japanese education and social systems. The reverse side depicts the Phoenix Hall of Byodo-in Temple in Uji City, Kyoto Prefecture.
・5,000 yen banknote
・Surface: Kazuyo Higuchi
・Back side: Korin Ogata’s “Irises”
・Dimensions: 76mm x 156mm
・Features: Ichiyo Higuchi is known as Japan’s first female professional writer, and her portrait is depicted on the obverse. During his short life, he left behind many literary works that dealt with the themes of poverty and social inequality. Her works had a great influence on Japanese literature. On the back is a painting of “Irises” by Korin Ogata, a painter from the Edo period.
・1,000 yen banknote
・Overse: Hideyo Noguchi
・Back side: Mt. Fuji and cherry blossoms
・Dimensions: 76mm x 150mm
・Features: Hideyo Noguchi is known as a bacteriologist, and his portrait is depicted on the surface. He is also known for discovering the pathogen of syphilis. He also conducted research on yellow fever and other infectious diseases, and his achievements have been recognized worldwide. On the back, Mt. Fuji and cherry blossoms, symbols of Japan, are depicted.
■ coin
Six types of Japanese yen coins are in circulation.
・500 yen coin
・Material: Nickel brass
・Features: The 500 yen coin is one of the most expensive coins in the world, and has advanced anti-counterfeiting technology. The front side has a paulownia tree emblem, and the back side has a design of bamboo and tachibana branches. The latest design was introduced in 2021, with a complex structure and increased security. The edges also feature latent image technology that changes when viewed from different angles.
・100 yen coin
・Material: White copper
・Features: It depicts cherry blossoms and is widely recognized as a cultural symbol of Japan. It is one of the most commonly used coins in daily life.
・50 yen coin
・Material: White copper
・Features: It is characterized by a hole in the center, and a chrysanthemum flower is drawn on the surface. The chrysanthemum is a flower that symbolizes the imperial family, and has a historically venerable design.
・10 yen coin
・Material: Bronze
・Characteristics: Byodoin Phoenix Hall is depicted, and an evergreen tree is depicted on the back. This coin is very widely distributed in Japan and is highly durable.
・5 yen coin
・Material: Brass
・Features: The 5 yen coin also has a hole in the center and is designed with ears of rice, water, and gears. These coins symbolize agriculture, fishing, and industry, and the 5 yen coin is considered to be an auspicious coin because it can lead to good fortune. It is also popular as an offering.
・1 yen coin
・Material: Aluminum
・Characteristics: Japan’s lightest coin, with a young tree depicted on the front. Young trees symbolize Japan’s growth and future.
■ 新紙幣と新硬貨の導入
In 2024, new Japanese banknotes and coins will be issued, with significantly updated designs and security features. This change is aimed at strengthening banknote anti-counterfeiting technology and extending the lifespan of banknotes. Also,Designed for easy visual and tactile identification. Additionally, these banknotes and coins have a universal design, making them easy for everyone to use.
10,000 yen bill: Eiichi Shibusawa’s portrait. Eiichi Shibusawa is known as the “father of Japanese capitalism,” a businessman who contributed to the establishment of many companies, and a person who valued the harmony between morality and economics. His portrait is considered suitable for the new 10,000 yen bill.
5,000 yen bill: Umeko Tsuda is depicted. She is known as a pioneer in women’s education and the founder of Tsuda College. In honor of her achievements, the new 5,000 yen bill has been featured.
Thousand yen bill: Kitasato Shibasaburo is depicted on it. Kitasato is considered the “father of modern Japanese medicine,” and is a scientist who made significant contributions to the field of bacteriology.
2. History of the Japanese Yen
The history of the Japanese yen is closely related to Japan’s modernization policy during the Meiji era. With the “New Currency Ordinance” enacted in 1871, the yen (yen) was introduced as Japan’s official currency. This was to modernize the paper money issued by feudal lords and the Edo period monetary system that had been used up until then, and establish a unified monetary system.
1. Introduction of the Meiji era and the gold standard system
The yen was established so that 1 yen was equivalent to 1.5 grams of gold or 24.26 grams of silver, and was subdivided into 100 sen or 1,000 rin. Initially, the yen was a currency backed by gold and silver, but with the adoption of the gold standard in 1897, the yen became associated with gold. This system lasted until 1931, but was abandoned due to the Great Depression.
2. Changes after World War II
After World War II, the Japanese yen lost most of its value, and a fixed exchange rate of 360 yen to the dollar was established in 1949. This rate was adopted as part of the Bretton Woods Agreement and was intended to stabilize the Japanese economy. However, with the collapse of the Bretton Woods system in 1971, the yen transitioned to a floating exchange rate system, and its value began to fluctuate gradually.
3. From the 1980s to the present
In the 1980s, the Plaza Accord caused the yen to appreciate significantly, temporarily reaching the 80 yen level to the dollar. This rapid appreciation of the yen had a major impact on Japan’s economic growth. Since then, the yen has been traded as one of the major currencies in the world’s financial markets, and is still widely used as the third reserve currency after the dollar and euro.
3. How to use Japanese banks and ATMs
Banks in Japan There are many banks in Japan, and the major ones include Bank of Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, and Mizuho Bank. These “megabanks” have branches throughout Japan and provide a wide range of banking services. Japan Post Bank (Japan Post Bank) and online banks (Rakuten Bank, Seven Bank, etc.) are also popular among users.
Opening an Account To open a bank account, you will need an identification document such as a residence card or passport. Also, at many banks, it is common to use a stamp (inkan) to open an account, but recently there are an increasing number of banks that do not require a stamp. When you open an account, you will be issued a cash card and will be able to make transactions at ATMs and do online banking.
How to use ATMs ATMs in Japan are widely located in both urban and rural areas, and allow you to withdraw, deposit, transfer, and check your balance. In particular, 7-Eleven ATMs and Japan Post Bank ATMs accept credit and debit cards issued overseas and have English menus.
■ ATM operating procedures:
- insert card
- Language selection (English etc.)
- Enter your PIN
- Select transaction details (withdrawals, deposits, etc.)
- Enter the required amount
- Confirm transaction details and complete transaction
Things to keep in mind when using cash: In Japan, cash remains the primary means of payment. It is recommended that you always carry cash, as credit cards may not be accepted, especially in smaller stores or in rural areas. Also, when using an ATM, you may be charged a fee for withdrawals with a foreign card, so it is important to check your bank’s fees before using it.
4. Types of payment methods in Japan
In Japan, there are a wide variety of payment methods, so it is important to choose the appropriate method depending on the situation and location. Below, we will explain in detail the payment methods that are common in Japan.
1. Cash 
Japan remains a cash society, with many stores and restaurants using cash as the primary means of payment. It is recommended that you carry a certain amount of cash with you, as many small shops and food stalls, especially in rural areas, only accept cash. The reason why the use of cash is so strong is because of Japan’s high security and traditional culture.
2. Credit card 
Credit cards are widely accepted in many stores and hotels in urban areas. Visa, Mastercard, JCB, and American Express are commonly used, and credit cards are accepted, especially in tourist areas and large chain stores. However, there are still places in rural areas and small stores that do not accept credit cards, so you need to be careful.
3. Electronic money/IC card 
IC cards such as Suica and PASMO are not only convenient for using public transportation, but can also be used at convenience stores and vending machines. You can also register these cards on your smartphone and make payments via Apple Pay or Google Pay.
4. Smartphone payment app 
Payment using smartphones is also rapidly becoming popular, with PayPay, LINE Pay, Rakuten Pay, d Payment (Docomo), etc. being widely used. These apps allow you to pay by scanning a QR code, and many stores support this. It is also popular among young people because it offers benefits such as point redemption and coupons.
Finally
Finally, deepening your understanding of the Japanese yen, the Japanese financial system, and payment methods is essential to making your life and travel in Japan smoother and more comfortable.
Please refer to the information introduced in this article and use the knowledge to carry out daily transactions and purchases with confidence. Also, by having this knowledge, you will be able to enjoy a more fulfilling life in Japan and have a richer experience.
