Cash is No Longer King in Japan as Use of Coins Drops Sharply

The number of coins circulating in Japan has fallen by an unprecedented amount, suggesting the nation's households are coming to the end of their long love affair with the piggy bank. From a report: The national stock of coins rose steadily since 1970, but has fallen sharply on a year-on-year basis for 18 straight months, according to Bank of Japan data. The turnround has been sparked by a combination of the Covid pandemic, banking fees, inflation and the rise of cashless payment technology. The popularity of cashless payments -- which some have linked with the idea that coins were perceived as "dirty" and a vector for Covid -- accelerated sharply in 2022. Cashless transactions accounted for 36 per cent of all consumer payments, compared with 15 per cent a decade earlier. Analysts said the public's shift away from coins may also signal a wider change in Japanese attitudes towards saving. The sharpest drop has been in circulation of the largest denomination 500 Yen ($3.5) coin. This is the most common coin given to children to keep in their piggy banks, a tradition that seeks to establish solid patterns of saving and deferred gratification at an early age.

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