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

Soon, Your Tesla Will Follow You Like A Pet
'... follow him as faithfully as a well-trained hound.'

Chinese Watrix Gait Recognition Watching You Always
'... those pesky gait-recognition cameras.'

FlexPai Foldable Phone By Royole
'...A paper thin polycarbon screen unfurled.'

Oh Yes, We're Building The Rotating Tower In Dubai
'Give me an old-fashioned tetragon on a central pivot every time.'

Bioreactor Helps Legless Frogs Get Their Jump Back
'An alien drug... Used by an insect race... It can repair bones and organs. It can grow new tissue."

Xinhua AI Anchor Puts CGI Face To Automated News
'...a congeries of software agents.'

Wirewax Watching You Watch, Adjusting Your Experience
'He adjusted the n, the r and b knobs, and hopefully anticipated a turn for the better...'

LawGeex AI Beats 20 Top Lawyers
'The Law Society has strict rules on the use of pseudo-intelligent software - terrified of putting... its members out of work.'

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

MIT Headset Lets You Communicate Without Speaking
'The subvocal read nerve signals, letting her enter words by just beginning to will them...'

Exploring Oceans Across The Solar System
'Black liquid flashed past the turbot’s infrared eyes.'

SWEEPER Robot Peter Piper Picking Peppers
'... little machines, that went from plant to plant, apparently on caterpillar tracks, cutting off the ripe fruit.'

Oil from Algae - Can It Be Done?
'We dump everything that's waste into the tanks, pump the oil off the top.'

Moving Whole Planets, Revisited
There was a lot of work done on this idea over the years.

Disney Keeps Backups Of Star Wars Franchise Actors
'She is a personality-construct, a congeries of software agents...'

Farming In Space Starts With Mycorrhiza
'The inner leaves were beginning to curl faster than the outer leaves.'

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.