Wadō Kaichin Silver Coin (和同開珎銀銭) — Japan's Oldest Currency: A Short-Lived Experiment

In Wadō 1 (708), influenced by Tang China, Japan decided to issue the Wadō Kaichin silver coin in order to establish its own monetary system. In the political context surrounding the court at this time, the ritsuryo system was being strengthened under the grip of Fujiwara no Fuhito's power. Fujiwara no Fuhito placed great importance on the issuance of currency in order to establish the financial foundation of the state. As Japan's first official currency, Wadō Kaichin came to lay that groundwork. Behind the issuance of the silver coin, silver production from Tajima Province and Izumo Province was an important factor. These regions possessed abundant mineral resources and were chosen as sources of silver. While modeled on Tang China's monetary system, a policy that took Japan's own economic environment into consideration was attempted. The silver coin was often traded by weight, which posed the challenge of difficulty in unifying its value. In this era, the introduction of a monetary system held significance not only as an economic measure, but also as a symbol demonstrating the governing power of the state. Under Fujiwara no Fuhito, the issuance of the silver coin was also an attempt to raise the prestige of the nation. The fact that a switch from silver coin to copper coin was made the following year suggests that the economic policy of the time was a continuous process of trial and error. Referring to the overview and appeal of ancient coinage will make the overall picture of the monetary system of that era easier to understand.

The minting of the Wadō Kaichin silver coin was a process that made full use of the most advanced technology of the time. The main minting locations were Tajima Province and Izumo Province, where many craftsmen engaged in the production of silver coins day and night. Silver was obtained by smelting ore from these regions, and its purity was said to be high, though specific figures are not clear. The minting was based on technology transmitted from Tang China, with uniquely Japanese improvements added. At the minting sites, work was carried out melting silver in furnaces and pouring it into molds. This work required skilled technique and experience, and many craftsmen competed in their craft. The molds were produced at workshops in various locations, and advanced technique was required to achieve accurate shapes. The surface of the silver coins bore the characters 「和同開珎」, which functioned as a kind of state seal. Such minting techniques came to lay the foundation for the monetary system that followed, playing an important role in Japan's monetary history. The efforts and ingenuity of the craftsmen held historical significance in the minting of Japan's first silver coins, however brief that period was. Comparing the details of silver coin minting with the details on Edo silver coins gives a clear understanding of how the technology evolved.

How was the Wadō Kaichin silver coin, issued in Wadō 1, received in the everyday life of the Nara period? The silver coin initially attracted expectations as a new form of currency, but in actual circulation it faced many challenges. Because the value of the silver coin depended on its weight, it was necessary to use scales to measure it during transactions. For this reason, it was cumbersome for merchants and citizens to handle, and people accustomed to barter found it inconvenient. Furthermore, since the value of silver differed by region and the unification of prices was difficult, it struggled to earn trust. Such a situation ran counter to the economic stabilization that Fujiwara no Fuhito had intended. The circulation of the silver coin came to an end in a short period of time, and the following year it was unified into the copper coin. The copper coin enabled wider circulation and allowed for the unification of value, making it possible to build a stable economic foundation. The voices of the citizens reflect the anxieties and expectations surrounding the monetary policy of the time. The failure of circulation prompted a review of Fujiwara no Fuhito's policies and, as a result, contributed to the construction of a more stable economic system. By referring to types of ana-sen and how to identify them, this historical context will help one understand the role and evolution of currency.

Although the Wadō Kaichin silver coin was short-lived, it had a profound influence on the monetary system that followed. In Wadō 2 (709), the circulation of the silver coin was swiftly banned and the transition to the copper coin took place. This decision was part of Fujiwara no Fuhito's review of economic policy and his reform of Japan's monetary system into something more efficient and stable. The introduction of the copper coin promoted trade with Tang China and invigorated economic activity within Japan. The failure of the Wadō Kaichin silver coin became an important lesson for the next step, bringing about technological and institutional advances in subsequent coin minting as well. In later generations, the Wadō Kaichin silver coin has become a valuable subject of study for those learning about Japan's monetary history. In particular, archaeological discoveries have advanced in recent years, providing important clues for understanding the economic conditions and policy background of the Nara period. Such historical lessons have relevance to modern economic policy and have also been referenced in the construction of new monetary systems. Though it existed for only a short period, the Wadō Kaichin silver coin symbolically illustrates the growth process of Japan's monetary system. Surviving examples may have their value reassessed through the basics of old coin auctions.