The current Prime Minister of Japan, Fumio Kishida, has expressed his support for blockchain technology as a possible answer to the technical challenges that Japan is now experiencing.

Kishida said there were “different possibilities for adopting Web3” in Japan in response to a line of inquiry raised by a Liberal Democratic Party member named Masaaki Taira on February 1 before the House Budget Committee in Japan. He went on to say that the Japanese government could use things like non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs) in their efforts to revitalize regions and promote ‘Cool Japan’, which is a national strategy meant to showcase the country. innovations and culture to the rest of the world.

According to Kishida, “a new community can be made up of people who have an interest in the same social concerns if DAOs are taken into account.” “Creators can also use NFTs to diversify their income, which can help them maintain a highly engaged following.”

Taira serves as the government task force chair for the Web3 policy task force. He pointed to the coordination with the tax authorities in Japan, as well as the investigation into the release of a digital yen. The country’s central bank announced in November that it planned to start a pilot program for a digital currency starting in the spring of 2023. He pointed to these two things as evidence.

Taira was quoted as saying, “I think the different forms of blockchain technology and the technology that Web3 uses are helpful in solving the many challenges we face.”

Since taking office in October 2021, Kishida has made sporadic comments about the Japanese government’s plans to invest in Web3 services as a component of the digital transformation taking place in the country. His cabinet approved, in September, the distribution of NFT as a prize to regional authorities that have used digital technology to find solutions to difficulties.

The deputy director general of the Japan Financial Services Agency’s Office of Strategy Development and Management has advocated for stricter regulations on cryptocurrencies, similar to those that exist for banks. Amid the recent downturn in the cryptocurrency market, several exchanges including Coinbase and Kraken have stopped operating in Japan. Additionally, the Japanese subsidiary of the insolvent FTX has until March 9 to cease operations.