Abstract
The use of electronic money based on digital data is spreading in today's society thanks to recent advances in information technology. In Japan, electronic payment systems such as Edy, Suica, PASMO, nanaco, and WAON have become increasingly popular, and they are used widely for making small payments. This study aims to assess the influence of the proliferation of electronic money on present currency by investigating the status of electronic money usage, the amount of currency in circulation, and other factors. The results indicated that the proliferation of electronic money influences the circulation of notes only slightly, while its effect on coins with smaller denominations is non-trivial.
