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 ")

3D Printed Fashion - Plastirobes And Transdresses
'... dial a new fashion every day!' - Niven and Barnes, 1992.

ThreeForm 3D Scans And Digitally Simulates Customer Fashion
'...A miracle of misapplied engineering caused his own face to appear on the illustrated figures dressed in trooper red.' - Harry Harrison, 1965.

Safilo Brain-Sensing Eyewear
'they all relaxed and got mellow....' - Philip K. Dick, 1977.

The Sheep Look Up In Beijing
'The hungry sheep look up, and are not fed...' - John Brunner, 1972.

 

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

Bat Bot Robotic Flapping-Wing Drone
'The dark birdforms dotted the mountaintops like statues of prehistoric beasts, wings outspread...'

NASA's Astronaut Rescue Ball
'Ball and closely-prisoned man plummeted downward..'

ARM Wants To Build Brain Chips
'Slivers of microsoft, angular fragments of colored silicon...'

Sky Fence - A Drone-Proof Shield Created Over Prison
'There’s still a protective field over the whole thing. It volatilizes anything that tries to get through.'

Geoengineering The Atmosphere For Climate Change
'...a uniform temperature for each degree of latitude the year round.'

Archinaut Orbiting Robotic Factory
'mass-produced only in the orbiting factories...'

Cryonic Preservation - The Last Perk You'll Ever Need
'Is there not also a law providing for voluntary suspension of animation?'

Computers Understand Humans By Watching And Modeling Them
Soon, your computer will be watching you... and judging you.

NASA Asks For Moon To Earth Delivery Ideas
'Authority's 3-g catapult was almost one hundred kilometers long...'

Musk Tunnels Wisely Restrict Drivers
Too many robots.

Robot Swarms Controlled With Augmented Reality
'You're not thinking in enough dimensions...'

MIT's C-LEARN Helps Robots Transfer Learning To Other Robots
'Talk Between Robots radio...'

Mini-Brains In A Dish
'Cultured brains on a slab.'

Rapid Automated Search For Habitable Planets Needed
'I was near enough it now to set my automatic astronomical instruments to searching it for a habitable planet.'

WatchSense Perfect For Fat-Fingered Smartwatch Owners
'Now all you had to do was wave your hand in the general direction of the components...'

Digital Construction Platform Robot 3D Prints A Building
'It extrudes material like a spider.'

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.