Why Do Japanese Coins Have Holes?

Japanese coins, notably the 5 yen coin, have holes primarily to save on material costs during their production. This design choice was implemented by the Japanese government to reduce the amount of metal needed for each coin.

The Primary Reason: Cost Efficiency

The most significant reason behind the hole in certain Japanese coins, particularly the 5 yen coin, is material cost reduction. By incorporating a central hole, less metal is required for each coin minted. This seemingly small change accumulates to substantial savings over millions of coins produced annually. The Japanese government specifically added the hole to the 5 yen coin with this economic benefit in mind.

Which Japanese Coins Have Holes?

While the 5 yen coin is the most well-known holed coin in Japan, it is not the only one. The following Japanese coins feature a central hole:

• 5 Yen Coin (五円硬貨, Go-en Kōka):
  • Material: Brass (60–70% copper, 30–40% zinc)
  • Symbolism: The Japanese word for 5 yen, go-en (五円), is a homophone for go-en (御縁), which means "good luck" or "a good connection/relationship." This makes the 5 yen coin a popular offering at Shinto shrines and Buddhist temples, symbolizing a good connection with the deity or Buddha.
  • Reason for Hole: Implemented to save material costs.
• 50 Yen Coin (五十円硬貨, Gojū-en Kōka):
  • Material: Cupronickel (75% copper, 25% nickel)
  • Purpose of Hole: While also saving material, the hole also serves to easily distinguish it from the 100 yen coin, which is similar in size and color but does not have a hole.

These coins are distinct in their appearance, making them easily identifiable by touch, which is also a practical benefit for users, especially those with visual impairments.

Quick Overview of Holed Japanese Coins

In conclusion, the holes in Japanese coins like the 5 yen and 50 yen are a deliberate design choice driven by practical considerations, primarily economic efficiency in production.