Japan PM Says Govt’s Digital Transformation Investments Will Include Metaverse, NFTs

Fumio Kishida, the Prime Minister of Japan, on Monday announced the government’s efforts to promote Web3 services, including blockchain, NFT, nonfungible tokens (NFTs), and the Metaverse.

The Prime Minister said Web3-related growth – including metaverse and NFT-related developments – is now part of the country’s growth strategy. He said the government is keen on creating a society where new services can easily be created.

On October 3, the Prime Minister delivered a speech before Japan’s National Diet (Japan's bicameral parliament) where he said the government’s investment in the country’s digital transformation already embraces the issuance of NFTs to local authorities using digital technology to solve challenges in their respective jurisdictions.

Besides signaling the government’s plan to digitize national identity cards, Kishida said the cabinet will promote efforts to expand the use of Web 3.0 services that utilize the metaverse and NFTs.

Kishida said Japan’s technological investments would enhance the development and production of semiconductors as part of a joint effort with the US. He said that his government is working on reform regulations related to the technology sector – as well as making institutional reforms that aim at creating an environment that facilitates the creation of new services, including Web3-related infrastructure.

 Kishida also plans to create new markets and funnel investment into science and technology, innovation, startup investment, and the digital sphere.

The Prime Minister’s speech confirmed Japan’s commitment to ease stringent policy. In March, various stakeholders and opposition parties expressed concern that potential startup companies and talent from Japan have relocated overseas due to issues such as over-regulation and restrictive tax rules over the past few years.

Lobby groups have been calling for the government to relax corporate taxes as stringent taxations have influenced crypto firms to relocate to other countries like Singapore and the United Arab Emirates.

In August, the Japanese government proposed a corporate-friendly crypto tax that would take effect from 2023. The Prime Minister’s plan of revamping the economy relies on spurring growth in Web3 firms as a key agenda.

The government’s effort to relax stiff regulations appears beginning to bear fruit. Late last month, the Binance exchange announced plans to seek reentry to the local market after failing to do so four years ago due to stringent measures.