Will Japan Abolish Cash?

Japanese economists are contemplating the abolition of cash, a radical monetary policy that could help the country's economy recover.

Japan is a country uniquely positioned to actually implement the abolition of physical currency. It has six major competing cashless payment systems, some of them implemented in mobile phones. It is estimated that there are about 120 million different cashless payment chips already in circulation.

According to Richard Jerram, a senior economist with Macquarie bank:

Without physical cash, a central bank can set rates exactly where it likes, runs the argument. Mr Jerram said: “At the heart of the problem of achieving negative nominal interest rates is the idea that physical currency is an anonymous bearer bond with a nominal interest rate of zero.” While a central bank can impose positive or negative rates on non-physical assets, transmitting those rates to physical currency is a huge challenge. By permanently removing cash from a system, he added, policymakers are robbed of the excuse that zero is the lowest that nominal rates can go as a deflation-fighting tool.

One Bank of Tokyo Mitsubishi strategist described it as being “in the realms of economic science fiction”.

The idea of a cashless society was fully realized in the science-fictional work Looking Backward, an 1888 novel by Edward Bellamy. It's a very early reference, to the basic idea of a universal credit card:

A credit corresponding to his share of the annual product of the nation is given to every citizen on the public books at the beginning of each year, and a credit card issued him with which he procures at the public storehouses, found in every community, whatever he desires whenever he desires it. This arrangement, you will see, totally obviates the necessity for business transactions of any sort between individuals and consumers. Perhaps you would like to see what our credit cards are like.

"You observe," he pursued as I was curiously examining the piece of pasteboard he gave me, "that this card is issued for a certain number of dollars. We have kept the old word, but not the substance. The term, as we use it, answers to no real thing, but merely serves as an algebraical symbol for comparing the values of products with one another. For this purpose they are all priced in dollars and cents, just as in your day. The value of what I procure on this card is checked off by the clerk, who pricks out of these tiers of squares the price of what I order."

From Business Times Online.

Scroll down for more stories in the same category. (Story submitted 6/20/2009)

Follow this kind of news @Technovelgy.

| Email | RSS | Blog It | Stumble | del.icio.us | Digg | Reddit |

Would you like to contribute a story tip? It's easy:
Get the URL of the story, and the related sf author, and add it here.

Comment/Join discussion ( 6 )

Related News Stories - (" Lifestyle ")

ROAM Robotics Skiing Exoskeleton
'The real genius in the design is that you don't have to control the suit; you just wear it...' - Robert Heinlein, 1959.

IRL Glasses Block Screens, Limit Vision To Real Life
'If you couldn't see the ads, how would you know what was fashionable?' - John Varley, 1977.

The Hammock Caravan And Italo Calvino's Octavia
'Now I will tell you how Octavia, the spider-web city, is made.'

Americans! Stay Indoors To Save Energy
'Those funny old days, when men went for change of air instead of changing the air in their rooms!' - EM Forster, 1909.

 

Google
  Web TechNovelgy.com   

Technovelgy (that's tech-novel-gee!) is devoted to the creative science inventions and ideas of sf authors. Look for the Invention Category that interests you, the Glossary, the Invention Timeline, or see what's New.

 

 

 

 

 

Current News

Spicy Tomatoes Created With Genetic Engineering
How about mashed potatoes and brown gravy?

Driverless Hotel Rooms Predicted In 1828
'Did you never see a moving house before?'

Yandex Self-Driving Taxi Is Very Smooth
'The big car was slowing down, its computer brain sensing an exit ahead.'

Shrimp Actually Made Of Algae Is A New Wave Food
Bring in that crop algae.

Cosplay Style Wings Could Work On Moon
'They're lovely! - titanalloy struts as light and strong as bird-bones...'

Tesla Model 3 Has Outside Speaker Grille
Robert Heinlein does it again.

Arizona Luddites Attack Self-Driving Vehicles
'Trucks don't drive by themselves...' Or do they?

Organaut! Russians 3D Print Living Tissue In Space
'For a while your colonists will have to come up [to orbit] to the Hospital...'

WINE Spacecraft To Extract Water From Asteroids
'Yes, strangely enough there was still sufficient water beneath the surface of Vesta.'

Japanese Swordsmiths Take On Asteroids
'... a tiny, rocket-powered projectile, drove towards the mysterious bulk.'

Saturn's Rings To Vanish, Let's Mine Them While We Can
'...the valuable shards of what had once been satellites.'

Humans Could Take Up A LOT Less Space
We'd have a lot more room for gardening...

Implosion Fabrication Shrinks 3D Objects To Nanoscale
'Carter had watched miniaturization a hundred times...'

GMO Houseplant Cleans Your Air
Removes compounds too small to be captured by a HEPA filter.

Nova Meat Can 3D Print Your Dinner
Printing out chicken nuggets.

MIT Scientists Create 'Peek-a-Boo Prober' From Jetsons
Well, George, it's the latest thing.

More SF in the News Stories

More Beyond Technovelgy science news stories

Home | Glossary | Invention Timeline | Category | New | Contact Us | FAQ | Advertise |
Technovelgy.com - where science meets fiction™

Copyright© Technovelgy LLC; all rights reserved.