Japan’s Leap into the Future: Embracing Crypto and Web3
Japan is strategically positioning itself as a global leader in the Web3 industry, with a national strategy that promotes crypto adoption, fosters corporate collaborations, and creates a friendly regulatory environment.
In an era where technological advancements are shaping the economic future of countries all over the world, Japan is making a strategic leap into the Web3 revolution. However, the eastern island nation, once a global powerhouse within various industrial domains such as manufacturing and electronics, has found itself lagging behind, missing out on the rise of Web2 by failing to produce a single tech giant among the ranks of Google, Meta, and Amazon.
However, Japan now seems to be determined not to let history repeat itself. Recognizing the transformative potential of blockchain technology, cryptocurrencies, and the decentralized internet (ala Web 3.0), the nation has continued to make a concerted effort to position itself at the forefront of this digital revolution.
This strategic embrace of Web3 is not just a bid to regain its economic prowess but a comprehensive plan to become a global leader in the next phase of the internet’s evolution. To this point, the Japanese government recently outlined its national strategy, which involves the enthusiastic involvement of major corporations as well as highlights the country’s innovative approach to regulation.
Lawmakers’ Openness to Blockchain and Crypto Tech
In April, Japan’s ruling Liberal Democratic Party published a detailed whitepaper outlining recommendations for boosting crypto adoption locally. The scheme — part of Prime Minister Fumio Kishida’s larger strategic vision called ‘Cool Japan’ — is meant to promote the use of this novel technological paradigm across several sectors as well as help spur innovation within this space. Moreover, while other governments are looking to put more regulations in place, Japan is actively creating a friendly environment for Web3 companies to thrive as well as draw in additional foreign investments.
In a recent interview, Akihisa Shiozaki, secretary-general of Kishida’s Web3 strategy team, noted: “The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on.” He pointed out that major companies in Japan have started to enter the market, with mobile phone operator NTT Docomo recently pledging to invest up to 600 billion yen ($4 billion) into Web3 infrastructure. Not only that, large financial institutions are also looking to issue stablecoins to digitize the nation’s economy.
The Corporate Embrace of Web3 in Japan is Growing
Sony Network Communications, a division of The Sony Group, recently teamed up with Astar Network to launch a Web3 incubation program for projects focusing on the utility of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs). The program aims to explore how blockchain technology can solve various problems in their industry. Projects in the program may also be considered for investment from Sony Network Communications.
Similarly, automotive giant Toyota is also delving deeper into the use cases of blockchain technology. Earlier in April, the company hosted a comprehensive Web3 hackathon on the Astar Network to help Toyota formulate more efficient team management strategies as well as optimize its business decision-making processes. In regard to the above-noted developments, Sota Watanabe, the founder of Astar Network, was quoted as saying:
“A lot of the Japanese companies, especially the big ones such as Toyota, Sony, or NTT, would like to work on Web3. The reason is very simple, I guess. Japan used to be number one. Right? But we completely missed the Web2 revolution. So Web3 is the next big opportunity for the Japanese economy.”
Japan’s Economic Future Looks Bright
Despite the enthusiasm and the initiatives, there are challenges that Japan needs to overcome to become a world leader in Web3. The country needs to produce a groundbreaking Web3 company to prevent further contraction of the nation’s economy. Regulatory clarity is also needed to encourage entrepreneurs to enter the market.
Watanabe highlights the need for successful global use cases and entrepreneurs who can provide services globally from day one. “In the age of Web3, we have to make something new. We have to make a very innovative company that can be bigger, just like Sony, or just like Toyota. If we cannot make it, I think our economy is going to shrink…So it is really important for Japan to make one successful use case,” he highlighted.
Thus, as we head into an increasingly decentralized future, Japan’s continued success will bank heavily on its rapid embrace of crypto and Web3. In this regard, the country’s strategic initiatives, corporate collaborations, and regulatory advancements are already paving the way for Japan to become a global leader in the Web3 industry.