Demand for One-Yen Coins Dampened by e-Money, Tax Hike

Politics

Tokyo, Sept. 16 (Jiji Press)--The number of one-yen coins in circulation has fallen sharply in Japan, as consumers increasingly choose cashless payments with electronic money or credit cards.

The government has stopped minting new coins for circulation, while deteriorating units are being withdrawn.

With the consumption tax rate slated to be raised from 8 pct to the round figure of 10 pct in October 2019, the one-yen coin is bound to lose more favor with consumers.

According to the Bank of Japan, the number of one-yen coins in circulation stood at 37.8 billion in 2017, down 8 pct from the peak level of 41 billion in 2002.

By contrast, the amount of financial settlements by e-money exceeded 5 trillion yen in 2016, about 7 times the level of 2008, when the BOJ started its survey.

[Copyright The Jiji Press, Ltd.]

Jiji Press