Fumio Kishida, the Prime Minister of Japan, has announced his support for blockchain technology as a potential solution to the technological problems facing the country.

In response to questions from LDP member Masaaki Taira before the Japanese House of Representatives Budget Committee on February 1, Kishida said that there are “various possibilities for the use of Web3” in Japan. He added that the Japanese government could use aspects including Non-Fungible Tokens (NFTs) and Decentralized Autonomous Organizations (DAOs) in efforts to revitalize regions and promote “cool Japan” — a national strategy aimed at flaunting the country’s innovations and culture to the rest. the world.

“If you think about DAOs, people interested in the same social issues can form a new community,” said Kishida. “NFTs can also be used to diversify creators’ income and maintain highly loyal fans.”

Prime Minister Fumio Kishida addresses the Budget Committee on February 1. Source: YouTube
Tyra chairs the Government’s Web3 Policy Working Group. He referred to coordination with tax authorities in Japan as well as research into issuing the digital yen. The country’s central bank announced in November that it intends to start a digital currency pilot program starting in the spring of 2023.

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“I think these kinds of blockchain technology and the technology that uses Web3 are effective in solving various problems that we face,” said Taira.

Since taking office in October 2021, Kishida has occasionally spoken of the Japanese government’s intentions to invest in Web3 services as part of the country’s digital transformation. In September, his government authorized the issuance of NFTs as a reward for regional authorities using digital technology to solve problems.

Related: Japanese Prime Minister Says Government Investment in Digital Transformation Will Involve Metaverse and NFTs

The deputy director general of Japan’s Financial Services Agency’s Strategy Development and Management Office has called for stricter rules on cryptocurrencies similar to those for banks. Amid the downtown cryptocurrency market, exchanges including Coinbase and Kraken have shut down operations in Japan, while the local subsidiary of bankrupt FTX has until March 9 to suspend operations.