Government to invest in Metaverse, NFTs in digital transformation, says Japanese prime minister

October 6, 2022

By Sharan Kaur Phillora

Fumio Kishida, the prime minister of Japan since 2021, has said the government will be making efforts to promote Web3 services, including those dealing with nonfungible tokens, or NFTs, and the Metaverse.

Here’s what we know: 

During a speech before Japan’s National Diet on October 3rd, Kishida said that the government’s investment in the country’s digital transformation includes issuing NFTs to local authorities using digital technology to solve challenges. 

In addition, he hinted at the possibility of digitizing national identity cards. Moreover, the prime minister said the cabinet would “promote the use of Web 3.0 services that utilize the metaverse and NFTs.”

As part of a joint effort with the United States, Japan will invest in semiconductors and reform regulations related to the technology sector, Kishida said. Former Prime Minister Yoshihide Suga suggested that taxing Bitcoin (BTC) transactions in Japan was in the interest of the current prime minister, who took office in October 2021.

During Kishida’s term, crypto users in Japan have seen a number of developments in the space, from Mt. Gox moving forward on repayment procedures after years of legal delays to the reintroduction of crypto ATMs. 

Japan Crypto-Asset Business Association and Japan Crypto-Asset Exchange Association, two of the country’s crypto advocacy groups, called for a 20% separate tax on crypto earnings for individual investors – many currently face a crypto tax rate of up to 55%.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.