Japan’s Central Bank Considers Crypto’s Role in Post-Cash Economy

Bank of Japan officials are confronting what was once unthinkable: cryptocurrencies may eventually dominate everyday payments, potentially rivaling the yen itself. While a seismic shift isn’t imminent, digital assets are no longer dismissed as speculative—they’re now a plausible disruptor in Japan’s financial ecosystem.

Executive Director Kazushige Kamiyama recently acknowledged the declining relevance of banknotes during a central bank digital currency (CBDC) pilot meeting. "Usage of notes could fall significantly amid rapid digitalization," he noted, underscoring a stark reversal for a nation long synonymous with cash.

Government data reveals the velocity of change—cashless payments now account for 42.8% of transactions, nearly triple 2010 levels. Japan hit its 40% target a year early, signaling accelerating adoption. Yet the BOJ remains noncommittal about launching a digital yen, leaving the door open for decentralized alternatives to fill the void.