The Bank of Japan calls for increased efforts to promote a cashless society in Japan and follow CBDC.

Gate News bot message, officials from the Central Bank of Japan are intensifying their calls for Japan to keep pace with the rapid development of Digital Money, which could accelerate Japan’s shift from a “cash is king” mentality to cashless payments.

According to data from the Japanese government, the proportion of cashless payments in the country rose from 13.2% in 2010 to 42.8% in 2024, surpassing the government’s target of 40% a year ahead of schedule. Although Japan is globally lagging in payment technology, the increase in cashless transactions is forcing policymakers to ensure they are prepared to adapt to the public’s changing preferences for payment and settlement methods. This includes issuing Central Bank Digital Money (CBDC).

Kazushige Kamiyama, Executive Director of the Bank of Japan, stated: “Although the issuance of banknotes in Japan remains high, the usage of banknotes may significantly decline 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, universally accessible, while also being secure and resilient.”

Shinichi Uchida, Deputy Governor of the Bank of Japan, stated that CBDC could become a “key component of the infrastructure” shaping the future of Japan’s payment and settlement systems, but he emphasized that the demand for cash in Japan is not expected to disappear in the short term.

Source: Jinshi