About this Video

• Video Title: Why Japan Still Uses Cash
• Channel: Kenny Ohata
• Speakers: Kenny Ohata
• Duration: 10:11

Introduction

This video explores the reasons behind Japan's continued reliance on cash despite its technological advancements. The speaker investigates the historical, cultural, and economic factors contributing to Japan's unique relationship with physical currency.

Key Takeaways

• High Cash Usage: Japan maintains a significantly higher percentage of cash transactions (60-80%) compared to other developed nations like Sweden (15% reduction) and the US (30% reduction).
• Post-WWII Economic Factors: Post-World War II economic growth led to a strong banking system emphasizing stability, savings, and cash liquidity, fostering a culture averse to debt.
• Cultural Significance of Cash: Cash in Japan embodies tangible value, earned labor, and privacy, representing deeply ingrained societal values. The ritual of gift-giving with new bills in decorative envelopes further highlights this cultural significance.
• Economic Incentives: Near-zero or negative interest rates make cash a more attractive store of value compared to bank accounts. Japan's low crime rate also contributes to the safety of carrying cash.
• Demographic and Technological Factors: An aging population accustomed to cash transactions and technological barriers to digital adoption among seniors hinder a swift shift to cashless systems. The fragmented cashless payment market also presents challenges.
• Government Initiatives and Gradual Change: While the government has launched initiatives to promote cashless payments, a gradual transition is predicted, prioritizing social inclusion and addressing the needs of all demographics.