- Japan is still a society that loves cash and vending machines.
- The decision to start issuing new banknotes has caused problems.
- Approximately 80% of vending machines in Japan are not compatible with the new banknotes.
Japan is in many ways a country that has firmly embraced technology, yet there remains an obsession with good old cash.
Tokyo’s zelkova-lined Omotesando street and the boutique shops dotting Ginza are familiar sights for locals and tourists brandishing credit cards, but in some other places cash still dominates.
Small izakayas, inns, and shrines often only accept cash, and while cards are of course easier to use in dense urban areas like Tokyo and Osaka in the Kansai region, it is recommended to carry some cash when traveling outside of major cities.
However, if you plan on carrying cash in Japan in the near future, you may want to double-check what types of bills you have in your wallet.
Japan began printing its first new banknotes in 20 years this week in an effort to combat counterfeiting. The only problem is that the new notes aren’t being accepted everywhere.
Take the millions of vending machines in Japan, for example. Vending machines are big business in Japan, offering everything from hot coffee and beer to wagyu beef and hot sauce. Some take cards, but those that accept cash may not be able to use Japan’s new banknotes.
The Japan Vending Machine Manufacturers Association recently said that about 80% of vending machines in the country need to be upgraded to handle the new notes, Reuters reported, and parking ticket issuing machines and other equipment also need to be modified.
The problem is that Japan’s retro banknote validators are not designed to process the new notes, which contain high-tech features that help determine authenticity.
The new banknotes feature 3D holograms of historical figures, which the Bank of Japan says is a world first. Adapting Japan’s aging machinery to handle the new notes will be time-consuming and expensive.
In April, the Bank of Japan predicted that despite the expansion of cashless payments, “demand for cash, which can be easily used by anyone, anywhere, anytime, is likely to continue to play a major role as a means of payment.”
The note launch comes at an odd time: Tourists have flocked to Japan this year to take advantage of a weaker yen, which hit a 38-year low against the U.S. dollar this week.
Travel guides often advise tourists to carry cash, so if you’re planning on stopping at a vending machine anytime soon, it’s a good idea to check first to see if they accept your own bills.
