Wadōkaichin : Japanese Currency
Money has become an essential part of everyday existence. Money developed as a means to carry out transactions that involve a physical medium in exchange for acquiring goods or services. Before the advent of money, other things such as grains, livestock, or fabrics were used in markets for exchange for whatever was needed. Anatolian obsidian, an igneous volcanic rock, also used for stone-age tools, was a form of currency as early as 12,000 BCE. Obsidian was replaced with copper and silver sometime in the third millennium BCE.
Japan commodity money before the 8th century. | PHGCOM
In Japan, commodity money before the 8th century took the form of arrowheads, gold powder, and rice grains. Japanese coinage was inspired by the Chinese Tang coinage, Kaigentsūhō (Kai Yuan Tong Bao in Chinese). The first Japanese formal currency system was Kōchōsen (“Imperial currency”). The Wadōkaichin, or Wadō-kaihō, is the oldest official Japanese coinage minted as early as 708 CE on the orders of Empress Gemmei. Wadōkaichin are the four characters printed on the coin. Its name is derived from the era name Wadō (“Japanese copper”) and could also alternately mean “happiness” and “Kaichin,” which is thought to be related to “Currency.” Wadōkaichin coins were round with a square hole at the center of each coin to make it easier to hold the coins on a string. The coins were 2.4 cm in diameter and weighed about 3.75 grams. They remained in circulation until 958 CE.
Wadōkaichin. | PHGCOM
The Wadōkaichin’s value depreciated as the Japanese government issued coins with lesser metallic content and local imitations proliferated. A reform was promulgated in 760 CE where a new copper coin called Mannentsūhō was issued. It was worth 10 times more than the value of the Wadōkaichin. Other coins were also issued like the Taiheigenbō , which was valued equal to ten copper coins and the Kaikishōhō which was valued equivalent to ten silver coins. Silver minting was soon replaced by copper minting in the Nara period. There were twelve types of coins minted throughout Japan’s history including one minted in gold.