Why CASH Is Still KING in Japan (2025) | The Truth Behind Japan’s Love for Paper Money

Why CASH Is Still KING in Japan (2025) | The Truth Behind Japan’s Love for Paper Money

[Music] What if I told you that in one of the world’s most technologically advanced societies, the future still runs on paper? that even here in Japan, land of bullet trains, AI robots, and vending machines that serve hot meals, over half of all transactions are still made in cash. Why? Why in 2025 are millions of Japanese consumers still reaching for coins and paper bills in a world ruled by tap to pay and digital wallets? Welcome to Curios. Today, we’re diving deep into one of the biggest financial paradoxes of our time. Why cash is still king in Japan. In 2024, Japan officially passed 42.8% in cashless payments, beating its own target of 40% set for 2025. Sounds like a win, right? But zoom out and that means 57.2% of transactions are still done in cash. And that’s where the story really begins. Because behind every shiny digital graph, there’s a powerful cultural current that numbers alone can’t explain. In Japan, money isn’t just currency. It’s part of tradition. During New Year’s, kids receive o to dama, crisp cash tucked into special envelopes. People drop coins into shrine donation boxes, pay in cash at family-owned shops, and give money gifts at weddings and funerals. According to one Reddit user, cash makes you more aware of your spending. It’s physical. It’s mindful. It’s emotional control in a high-speed world. And that’s not something Apple Pay can replicate. Did you know Japan has over 2.2 million vending machines? A large number still don’t accept digital payments, and many broke after the 2024 yen redesign. Upgrading each machine costs up to $14,000 according to the Financial Times. For mom and pop stores, that’s just not worth it. So, what do they do? They stick with what works, cash. Japan is one of the safest countries in the world. Carrying cash here, it’s not dangerous. It’s normal. And let’s not forget, digital payments come with surveillance, data tracking, and hacking risks. Over 55% of Japanese consumers are still skeptical about mobile wallet security. In a country that values privacy and precision, that’s a deal breakaker. Let’s talk numbers. Interest rates in Japan still hovering around.5%. Inflation creeping over 2%. So why park your money in a bank that barely pays interest? Especially when some banks now charge fees just to count your coins. For many, stashing change at home simply makes more sense. The Bank of Japan is currently piloting a digital yen. It’s a big deal. But so far, no official roll out. Why? Because BOJ officials say any national digital currency must be secure, inclusive, and resilient, not rushed. And until they get it right, cash isn’t going anywhere. So, what are people saying? From Reddit to travel blogs, the message is clear. A lot of stores are still cash only. You can get yen at 7-Eleven anytime. It’s super easy. And yes, in 2025, some companies still pay salaries and cash envelopes. Because in Japan, habits don’t break easily. They evolve slowly. So, will Japan ever go fully cashless? Maybe, but not today. In a country built on precision, respect, and trust. Digital doesn’t always mean better. Sometimes the future holds on to the past. If you found this story insightful, hit like, subscribe, and tell us in the comments. Do you still use cash where you live?

Why does Japan still run on cash in 2025?
In this video, we explore the surprising reasons behind Japan’s cash obsession, from cultural customs and broken vending machines to privacy fears and slow digital rollout.

📺Chapters:
00:00 – Intro
00:56 – Data
01:28 – Culture
02:04 – Convenience
02:28 – Trust
02:51 – Inflation
03:16 – Digital Yen
03:43 – Ground Reality
04:08 – Outro

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