According to Fumio Kishida, there are “different ways to use Web3” in Japan. He has helped government agencies that use digital solutions with blockchain-based projects.
Japan’s Prime Minister, Fumio Kishida, has stated that blockchain technology could be a solution to Japan’s technological problems.
On February 1, Masaaki Taira of Japan’s Liberal Democratic Party questioned Kishida in front of the House of Representatives’ Budget Committee. Kishida responded that “various possibilities for using Web3” in Japan. He added that the Japanese government could use aspects including nonfungible tokens (NFTs) and decentralized autonomous organizations (DAOs) in efforts to revitalize regions and promote “Cool Japan”, a national strategy to showcase the country’s innovations and culture to the rest of the world.
“If you consider DAOs, people who are interested in the same social issues can form a new community,” Kishida said. “NFTs can also be used to diversify the income of creators and maintain highly loyal fans.”
Taira is in charge of the government’s Web3 policy task force. He discussed collaborating with Japanese tax authorities and researching how to create a digital yen. The country’s central bank announced in November that it would begin testing a digital currency in the spring of 2023.
“I think that these types of blockchain technology and technology using Web3 are effective in solving the various problems we have,” Taira said.
Since taking office in October 2021, Kishida has spoken several times about the Japanese government’s plans to invest in Web3 services as part of the country’s digital transformation. In September, his cabinet authorized the distribution of NFTs as a reward to regional governments that solved problems using digital technology.
The deputy director-general of Japan’s Financial Services Agency’s Strategy Development and Management Bureau has asked for stricter crypto regulations similar to those imposed on banks. Because of the cryptocurrency market downturn, exchanges such as Coinbase and Kraken have closed in Japan. The bankrupt company FTX’s local branch has until March 9 to cease operations.