Today, everyone knows that the official currency of Japan is the yen (円, en), which means “round”. However, the country’s path to a unified monetary system was long and difficult. In the Middle Ages, more than one and a half thousand different coins, made mainly of gold or silver, circulated in the territory of the Japanese archipelago. Such diversity reflected the feudal fragmentation of the country, which could not remain unchanged. Only after the establishment of stable rule over most of the territory did the situation begin to change.
The first coins of Japan
The history of money in Japan dates back to China, where the very concept of money came from. For a while, the Japanese used Chinese currency, but gradually realized that it was detrimental to the country's economic independence. Around the 700s AD, they began minting their own Japanese coins – Wadō Kaichin. They copied their Chinese counterparts in shape and weight, but were already considered purely Japanese.
The use of metal coins to purchase goods and pay for services was a novelty for many inhabitants of the archipelago. To encourage their spread, the government introduced special rules: for example, land transactions were allowed to be concluded exclusively with coins. The same applied to the settlement of legal disputes.
Later, the imperial court issued a new coin – Kōchōsen, which translates as “copper coin of the Imperial Court”. It was in circulation from 708 to 958. However, due to the lack of copper deposits in Japan, its content in coins gradually decreased, which led to the depreciation of the currency. At the same time, feudal conflicts were intensifying in the country and the central government was gradually losing control over the economic situation. Different regions began to mint their own money, which further complicated the financial system.
The era of regional currencies
By the end of the 15th century, the Japanese prefecture of Kai began issuing gold coins called Kōshūkin, which differed from the previous ones in that they did not have a hole in the middle, like the Chinese ones. They were issued in various shapes: both round and rectangular. Kai was a center of gold mining at that time, so the issuance of its own currency became quite natural here.
The monetary system of the time provided for several levels of denomination. Ryō was the largest unit, followed by bu, which was equal to a quarter of ryō. Next came shū (fu coins), which were one-fourth of bu. All of these denominations had a multiple ratio of either 1:4 or 1:2, which ensured a certain orderliness in calculations.
Introduction of a single currency
By 1590, Japan was ravaged by civil war, with powerful daimyo fighting for control of land, resources, and human destinies. Toyotomi Hideyoshi, having conquered much of the country, aimed for total centralization. But how could he unite the country not only with the sword but also with the purse? The introduction of the yen became not just a new coin, but a true work of art. 165 grams of gold measuring 10×17 cm! Huge, shiny, royal! But it was not thrown in a wallet or used in the bazaars – ōban was presented as a reward, given as a gift, demonstrating wealth and status.
When the imperial government finally took firm control of the economy in the 19th century, Japan adopted a single currency, the yen. The history of chaotic financial experiments ended. Since then, the yen has remained a symbol of Japanese stability, economic breakthrough, and global influence.
History of the yen: the path from reform to international recognition
When did the Japanese yen appear?? The modern currency of Japan - the yen - appeared in circulation after a large-scale financial reform carried out during the Meiji Restoration. In 1871, the government decided to unify the country's monetary system, which at that time was extremely confusing. 1694 different types of monetary units belonging to individual clans were in circulation at the same time. The full transition to the new currency was completed only by 1879, when the old banknotes were finally withdrawn from circulation.
Post-war challenges and devaluation
After Japan's defeat in World War II, the yen began to fall rapidly. Inflation reached such proportions that at the peak of the devaluation, 900 yen was equal to 1 US dollar. The situation was especially difficult on the island of Okinawa, where American military bases were located. Between 1958 and 1972, the yen was completely withdrawn from circulation there, and the US dollar became the only official currency.
However, after the country's economic recovery Japanese currency not only stabilized, but also turned into one of the most reliable currencies in the world. It became an important component of international financial transactions and remains so to this day. In the global market, it is designated by the code JPY, and the symbol looks like this: ¥.
Coins and banknotes of modern Japan
Today, coins in circulation range from 1 to 500 yen (1, 5, 10, 50, 100, 500). Collector coins in denominations of 1,000 yen are issued for important events or anniversaries, and their circulation is strictly limited.
Initially, yen was minted from gold and silver, but with the development of the financial system, paper banknotes appeared. In their modern form, Japanese banknotes are issued in denominations:
- 1000 yen.
- 2,000 yen (limited use).
- 5000 yen.
- 10,000 yen.
The banknotes depict prominent figures of Japan — scientists, writers, and statesmen who have made a significant contribution to the country's development.
The first paper money in Japan: a unique experience of the birth of a financial system
The history of Japan knows periods when money not tied to precious metals appeared in circulation. The first such experiments date back to around 1600. In the city of Ise, located in the Yamada district, trade has been actively developing since the Middle Ages. It was here that Yamada Hagaki appeared - not exactly money in the usual sense, but rather financial receipts that served as a guarantee of future payment for small transactions.
To prevent over-issuance of these receipts and to maintain their credibility, their quantity was strictly controlled by two organizations. The first consisted of merchants, the second of Shinto priests of the Ise Gegu Shrine. It was the priests of this shrine who were the first to issue prototypes of paper money, and their authority in society played a key role in building confidence in this form of currency.
Japanese uniqueness: trust-based issuance
Interestingly, before the centralization of the monetary system, the issuance of paper money Japan's currency It took place through the cooperation of merchants and monks, who actually acted as guarantors of its authenticity. This formed a special attitude among the Japanese towards money – as something sacred that required responsible use.
The culture of trust in financial obligations has become entrenched at the level of social traditions. In those days, stealing money almost did not exist - people simply did not perceive the possibility of misappropriating someone else's money as the norm. Although modern Japan is no longer completely free from theft, the level of honesty among the population is still impressive. Lost items, including wallets, are almost always returned to their owners through the lost and found office. In most cases, "misunderstandings" associated with thefts concern foreigners.
This approach to money is also reflected in the consumer behavior of the Japanese. There is no cult of excessive consumption here, as in the Western world. Instead, saving is not just a necessity, but a true art of spending resources wisely.
Asceticism and thrift as a lifestyle
Japanese society is traditionally brought up with an ascetic outlook on life. From an early age, children are taught to manage with a minimum of resources, which forms the habit of spending money wisely. Of course, there are exceptions, but in general, the Japanese have an extremely respectful attitude towards finances. This is even manifested at the linguistic level: the word for “money” – okane (おいし) – is usually pronounced with the honorific prefix “o”, which emphasizes respect for this phenomenon.
The introduction of the first paper money in Japan was not just a financial experiment, but a cultural phenomenon. Deep trust in the priests who vouched for the value of receipts formed a special attitude towards money, which has remained at the level of tradition even after centuries. Today, this feature of the Japanese mentality continues to influence the economic behavior of the population - from respect for monetary resources to the desire to minimize unnecessary expenses.
