Japan’s Investment in Digital Transformation to Include The Metaverse and NFTs
by Japan is set to invest in the metaverse and NFTs. According to Fumio Kishida, the Japanese government’s investment in digital transformation includes the issuance of NFTs to local governments via digital solutions.
Fumio Kishida, Japan’s prime minister since 2021, has stated that the government will make efforts to promote Web3 services, such as those involving nonfungible tokens, or NFTs, and the Metaverse.
In a speech to Japan’s National Diet on October 3, Kishida stated that the government’s investment in the country’s digital transformation already included giving NFTs to local governments that use digital technology to solve problems in their individual jurisdictions. This is following an earlier announcement by the country for the economy ministry to establish a Web3 office.
He also mentioned digitizing national identification cards. A step that is long overdue for most countries.
Furthermore, the prime minister stated that the cabinet would
“support initiatives to broaden the usage of Web 3.0 services that leverage the metaverse and NFTs.”
Kishida stated that Japan’s technical investments would include developing and manufacturing semiconductors in collaboration with the United States and working on technology-related regulatory reform.
The current prime minister, who took office in October 2021, follows previous Prime Minister Yoshihide Suga’s suggestion that Bitcoin (BTC) transactions in Japan be taxed.
During Kishida’s tenure, Japanese crypto users have witnessed various advancements in the industry, ranging from Mt. Gox going forward with reimbursement procedures after years of legal hurdles to the reintroduction of crypto ATMs in the country. In August, the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association, two of the country’s crypto advocacy groups, proposed a 20% separate tax on crypto gains for private investors — many already face a crypto tax rate of up to 55%.