Japan's first new banknotes in 20 years use holograms to defeat counterfeits

TOKYO — Japan began circulating its first new banknotes in 20 years on July 3, featuring three-dimensional portraits of the founders of financial and female education institutions in an attempt to frustrate counterfeiters.

The notes use printed patterns to generate holograms of the portraits facing different directions, depending on the angle of view, employing a technology that Japan's National Printing Bureau says is the world's first for paper money.

Though existing bills stay in use, train stations, parking lots and ramen shops are scrambling to upgrade payment machines while the government pushes consumers and businesses to use less cash in its bid to digitise the economy.

The new 10,000-yen (S$84) note depicts Eiichi Shibusawa (1840-1931), the founder of the first bank and stock exchange, who is often called "the father of Japanese capitalism".

The new 5,000-yen bill portrays educator Umeko Tsuda (1864-1929), who founded one of the first women's universities in Japan, while the 1,000-yen bill features a pioneering medical scientist, Shibasaburo Kitasato (1853-1931).

Currency authorities plan to print about 7.5 billion newly-designed bills by the end of the current fiscal year. They will add to the 18.5 billion banknotes worth 125 trillion yen already in circulation as of December 2023.

"Cash is a secure means of payment that can be used by anyone, anywhere, and at any time, and it will continue to play a significant role" even when alternative payment methods prevail, Bank of Japan Governor Kazuo Ueda told a July 3 ceremony celebrating the new notes.

The central bank has been conducting experiments on digital currencies, but the government has made no decision on whether to issue a digital yen.

'No sales impact'

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