Ropes to banknotes: How Nepal’s shrubs power Japan’s new hologram currency

For decades, farmers, primarily in eastern Nepal, have been cultivating Edgeworthia gardneri , known locally as argeli and in Japan as mitsumata. The bark of this plant is exported to Japan, where it is processed into paper for printing the yen.

As demand increased and Japanese supplies dwindled, these Nepalese farmers significantly boosted their economy and benefited financially.

This month, Japan introduced its newly redesigned banknotes, the first update in 20 years. The notes feature historical figures and anti-counterfeiting 3D holograms.

They are made from special paper derived from mitsumata, traditionally used to make Japanese washi paper, which gives them their distinctive coloring and texture.

“It’s a good source of income for many in the village, especially during the season when we are not busy in our farms,” said Puskar Jirel, a Nepalese farmer.

Argeli, the ‘cash’ crop

Argeli thrives at altitudes between 5,000 and 9,800 feet, making Nepal’s hilly regions an ideal location for its cultivation. In Jiri, a town about 115 miles from the capital Kathmandu, locals typically form groups of around 15 people to plant argeli on their designated plots.

According to Jirel, a 43-year-old farmer, his group leases about 31 acres and harvests approximately 4 tons of argeli bark annually.

However, the process is complex. During the autumn and winter months, the white bark from three-year-old shrubs is stripped, steamed, and sun-dried before being sent to warehouses for further quality inspection.

Jirel notes that this work spans at least four months, during which he employs up to 20 people to help with the harvest .

“Almost every household has someone who is working abroad,” he said . “This provides employment to people in the village, and they can earn about 25,000 rupees [US$185] a month, depending on their work, during these months.”

That income is higher than the average Nepali monthly salary of 17,300 rupees [$130].

Nepalese solution to a Japanese problem

Headquartered 2,860 miles away in Osaka, Kanpou Incorporated manufactures paper for official use by the Japanese government. Since the 1990s, one of Kanpou’s charitable programs has been exploring the foothills of the Himalayas to assist local farmers in digging wells.

During these efforts, their agents discovered a solution to Japan’s decreasing supply of mitsumata.

Pasang Sherpa, a farmer born near Mount Everest , initially grew argeli for fencing and firewood. He had no idea it could eventually become a lucrative source of income.

“I hadn’t thought these raw materials would be exported to Japan or that I would make money from this plant,” Sherpa said . “I’m now quite happy. This success came from nowhere, it grew up from my courtyard.”

Japan’s new banknotes

Japan has released its first new banknotes in twenty years, incorporating 3D holograms designed to prevent counterfeiting. These holograms display historical figures whose orientation shifts depending on the viewing angle, a feature Japanese authorities claim is a world first.

Japan, known for its significant reliance on cash, introduced the redesigned bills in 2019, allowing consumers and businesses five years to prepare for the transition. The government plans to print approximately 7.5 billion new banknotes by March of next year.