Bank of Japan calls for greater efforts to promote digital currency to shift to a "cashless society"

Odaily Planet Daily News According to Japanese central bank officials, they are stepping up their calls to push Japan to keep up with the rapid development of digital currencies, which may accelerate Japan's transition to cashless payments, where "cash is king". Japanese government data showed that the country's proportion of cashless payments in 2024 rose to 42.8% from 13.2% in 2010, exceeding the government's target of 40% a year ahead of schedule. Although Japan lags behind the world in payment technology, the increase in cashless transactions is forcing policymakers to ensure that they are ready to adapt to changes in public preferences for payment and settlement methods. This includes the issuance of central bank digital currencies (CBDCs). Kazushige Kamiyama, executive director of the Bank of Japan, said: "Although Japan's banknote issuance is still high, the use of banknotes may drop significantly in the future with the rapid development of digitalization." "Therefore, Japan must consider what measures can be taken now to ensure that its retail settlement system is convenient, efficient, and widely available, while also being secure and resilient." Shinichi Uchida, deputy governor of the Bank of Japan, said that CBDC could become a "key component of infrastructure" that shapes the future of Japan's payment and settlement systems, but he stressed that Japan's demand for cash is not expected to disappear in the short term. (Jinshi)