TechFlow, June 11 — According to Jinshi Data, Japanese central bank officials are intensifying calls for Japan to keep pace with the rapid development of digital currencies, which could accelerate the cash-reliant nation's shift toward cashless payments.
Government data shows that Japan's cashless payment ratio rose from 13.2% in 2010 to 42.8% in 2024, surpassing the government's 40% target one year ahead of schedule. Although Japan lags behind globally in payment technology, the growing volume of cashless transactions is pressuring policymakers to prepare for shifts in public preferences regarding payment and settlement methods—including the potential issuance of a central bank digital currency (CBDC).
Kazushige Kamiyama, executive director at the Bank of Japan, said: "Although Japan’s banknote issuance remains high, the rapid pace of digitization may lead to a significant decline in cash usage in the future." "Therefore, Japan must consider what measures it can take now to ensure its retail settlement system remains convenient, efficient, universally accessible, secure, and resilient." BOJ Deputy Governor Shinichi Uchida stated that a CBDC could become a "key component of the infrastructure" shaping the future of Japan’s payment and settlement systems, though he emphasized that demand for cash in Japan is not expected to disappear in the short term.
