Odaily News Officials at the Bank of Japan are stepping up their calls to push Japan to keep up with the rapid development of digital currencies, which could accelerate Japan's shift to cashless payments, where cash is king. Japanese government data shows that the country's proportion of cashless payments in 2024 rose to 42.8% from 13.2% in 2010, exceeding the government's target of 40% a year ahead of schedule. Although Japan lags behind the world in payment technology, the increase in cashless transactions is forcing policymakers to ensure that they are ready to adapt to changes in public preferences for payment and settlement methods. This includes the issuance of central bank digital currencies (CBDCs). "Although Japan's banknote issuance remains high, the use of banknotes is likely to decline significantly in the future as digitalization develops rapidly," said Kazushige Kamiyama, executive director of the Bank of Japan. "Therefore, Japan must consider what measures can be taken now to ensure that its retail settlement system is convenient, efficient, and widely available, while also being secure and resilient." Shinichi Uchida, deputy governor of the Bank of Japan, said CBDCs could become a "key component of infrastructure" that shapes the future of Japan's payment and settlement systems, but he stressed that Japan's demand for cash is not expected to disappear in the short term. (Jinshi)