Rethinking Personal Stamps and Seals in Modern Society

Introduction

• Article by Philip Brasor, published on February 22, 2020.

• Discusses Japan's ongoing transition away from traditional personal stamps (hanko) towards digital transactions.

MUFG Bank Initiative

• MUFG Bank offers ¥1,000 to each of the first 100,000 customers willing to switch from paper passbooks to online banking.

• Aim: Encourage digitalization to lower bank operational costs, including savings on stamp taxes.

• Consequence: Government revenue from stamp taxes may decline, but supports banking industry's financial health.

The Tradition of Hanko

• Hanko and inkan are used in Japan to finalize printed documents, akin to traditional signatures.

• Seen as an analog technology; the private sector is phasing out its use.

• Hanko's reliability in legal matters questioned: unlike fingerprints, many seals can look alike due to common surnames.

• Plastic hanko can be bought and registered, leading to identical seals being used by different individuals.

Government Initiatives

• The Asahi Shimbun reported on a bill to revise the Commercial Registration Act aiming to streamline company formation.

• One proposal: eliminate the need for hanko in incorporation processes.

• Historically, the hanko industry has proposed recognizing hanko as a world cultural asset; however, this was unsuccessful.

Response from the Hanko Industry

• Hanko industry has dramatically decreased in size (down to one-fifth compared to 40 years ago).

• The association struggled to lobby effectively for traditional practices

• They were able to persuade the government to keep hanko as an option amidst digitalization efforts.

IT Minister and Digitalization

• Naokazu Takemoto, an analog-focused IT Minister, leads the push for traditional methods but is criticized for his lack of tech knowledge.

• Hanko advocates push for keeping hanko as digital tokens; however, this diminishes the original aesthetic significance of hanko.

Obstacles Identified by the Government

• Main obstacles for digital transition: hanko usage and reliance on notary publics during incorporation.

• Conclusion of studies: Notary meetings could be mitigated, allowing for video calls, although notaries persist in relevance while hanko's future remains ambiguous.

Future of Hanko Industry

• Introduction of automation technology: "hanko robot" described as capable of affixing multiple seals to documents.

• Development led by automation firms rather than the hanko industry itself; still in early stages of practical implementation.

• Justification for keeping hanko: registered seals are still needed for certain old bank accounts, especially for withdrawals after ten years of inactivity.

• New accounts no longer require hanko, prompting the industry to consider future survival strategies.