Bank of Japan Currency Museum

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The History of Japanese Currency » Historical Events and Currencies in Use

From the middle to late 16th century.

Disruption of the inflow of coins from China and the appearance of gold and silver coins

In the latter half of the 16th century, the inflow of Chinese coins was disrupted, leading to a decrease in the circulation of coins 4). In the 1570s in western Japan, rice was used instead of coins to settle large transactions like real estate. Warlords actively developed mines, and minted silver and gold coins for large transactions and for military funds, including Sekishu-gin silver coins and Koshu-kin gold coins.

At the Iwami silver mine, a new refining technology known as “cupellation” was introduced ahead of other mines in Japan. The silver produced from this mine was exported overseas. The Koshu-kin gold coins were issued based on the currency units ryo, bu and shu, adopting the quaternary numeral system, and these units continued to be used for gold coins during the Edo period.

4) Chinese coinage: In the 16th century, silver coins played an exclusive role in Chinese coinage and the production of privately, as well as officially, minted coins was stopped, which led to a suspension of the outflow of Chinese coins to Japan.

Latter half of the 16th century

Spreading use of gold and silver coins

Oda Nobunaga and Toyotomi Hideyoshi aimed to establish a monetary system as a means to exercise control over the whole nation. Nobunaga issued an order to prohibit coin selecting (erizeni). In the order, he mandated the use of gold and silver coins for transactions of expensive goods, and fixed their exchange rates against copper coins. Hideyoshi took over direct control of mines throughout the country and minted the standard coins, including Tensho Oban gold coins.

Oban gold coins were used in ceremonies as rewards or gifts among samurai families. These practices lead gold coins to gain official currency status.

First half of the 18th century Shotoku and Kyoho recoinages

To cope with inflation caused by the Genroku recoinage, another recoinage (Shotoku regoinage) was carried out in 1714 to increase the gold fineness according to a proposal made by Arai Hakuseki, a Confucian adviser to the Shogun. The fineness of Shotoku Koban gold coins was set at the same level as Keicho Koban gold coins of the early 17th century. This resulted in a sharp reduction of money in circulation, causing stagnancy in economic activities and a decline in commodity prices.

The government, however, further increased the fineness of Kyoho Koban gold coins in 1715, the year after the Shotoku recoinage. Of all recoinages that were carried out in the Edo period, only the Shotoku and Kyoho recoinages resulted in increased gold and silver fineness.