Even Buying Just One Bread Causes a 'Rush'... Handy Tips for Using Coins While Traveling [Nichiyoubi Culture]

1 Yen Unit Tax Applied, Possibility of Counterfeiting... High Usage of Coins

"Are you really going to pay like this?"

One surprising thing when traveling in Japan is the coins. When you buy something with a bill, a bunch of coins pour out as change. If you hand over the exact amount in bills to avoid counting coins, the shopkeeper always asks, "Are you really paying like this?" Counting and receiving coins is quite a hassle.

Why does Japan have so many types of coins? Today, I'll share some fascinating stories about Japanese coins. I'll also give you some 'sweet tips' on handling coins while sightseeing.

Currently, six types of coins are in circulation in Japan: 500, 100, 50, 10, 5, and 1 yen coins.

Until the 15th century, Japan did not have a well-established currency system and used imported coins such as those from China. A unified system nationwide was established during the Edo period. At that time, the yen was used in gold and silver coins, and the first banknotes appeared during the Meiji era, which aimed for modernization. The unit 'yen' was adopted, with 1 yen defined as 1.5 grams of pure gold, 1/100 as 'sen', and 1/1000 as 'rin'.

There are many theories about why the currency was named 'yen,' but one story is that some intellectuals in the Edo period used to call 'ryo' (a traditional unit) as 'en,' which naturally evolved into 'yen.'

It was decided that all yen coins would be round because compared to square coins, round coins are easier to use, less prone to wear due to the lack of edges, and suitable for mass production. Therefore, many coins were issued. Especially banknotes were easy to counterfeit, so many coins were issued. At that time, not only yen but also coins like 1 sen, 5 sen, 10 sen, and 50 sen circulated as subsidiary currency. The current system was fully established by 1988.

The 5 yen and 50 yen coins are distinctive because they have holes in the center. This design helps distinguish them from other coins, makes counterfeiting difficult, and helps visually impaired people identify them easily.

The 500 yen new banknote (left) and the old banknote. (Photo by Japan Ministry of Finance)

The 500 yen coin was originally issued as a banknote but started being minted as a coin in 1982. Due to frequent counterfeiting of the 500 yen banknote and the widespread use of 100 yen coins, the 500 yen coin was introduced for convenience.

This 500 yen coin was newly issued again in 2021. Many people have experienced vending machines rejecting 500 yen coins because many machines still do not recognize the new coins. The reason for reissuing the 500 yen coin was also due to the prevalence of counterfeit currency. In fact, crimes involving 500 yen coins were rampant.

There was a case where the surface of South Korea's 500 won coin was shaved and inserted into Japanese vending machines, which recognized it as a 500 yen coin. This was exploited to fraudulently obtain the price difference from vending machines. Since 500 yen is about 4,500 won, this meant nearly nine times the profit. Now, vending machines have been updated to recognize genuine coins, making such crimes virtually impossible.

In addition, Japan separately displays the pre-tax price and the price including tax when purchasing items, so prices often do not round off neatly and are divided down to the 1 yen unit. Because of this, the 1 yen coin is considered very useful.

Ultimately, due to pricing methods, counterfeit prevention, and other reasons, the use of coins became inevitable.

Still, handling coins during travel in Japan can be quite troublesome. However, even if you spend time counting coins at the register, clerks rarely rush you, so it is generally best to use coins as much as possible.

However, you can only use up to 20 coins of one type at a time. Department stores and other shops may refuse payment if you exceed this limit. For example, paying 200 yen with twenty 10 yen coins is not allowed. You can exchange coins at banks, but usually, a fee is charged.

Self-checkout counter at Japan's Seven-Eleven. (Photo by Seven-Eleven)

In fact, coins can be used in various ways such as playing capsule toy gachas, buying drinks from vending machines, or charging transportation cards. Also, coin exchange machines are available at airports on your way home.

The most convenient way to use coins during travel is at convenience stores. Some convenience stores in Japan, like Seven-Eleven, have introduced new cash registers where you don't need to count coins. You can just pour all your coins into the slot, and the machine will calculate the amount and return the change in bills or other coins. If you have a small amount, it's worth trying.