Japan PM hails blockchain as foundation of ‘New Capitalism’

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Japan’s Prime Minister believes blockchain and Web3 can solve the country’s social issues and reignite economic growth.

Fumio Kishida spoke at the recently held WebX 2024 in Tokyo, an event that attracted over 16,000 attendees and speakers from the Japanese government and the private sector.

Kishida hailed blockchain as a technology fundamental to his government’s vision of Japan. Since taking over in 2021, the PM has been championing the ‘New Capitalism’ model, where economic growth and income distribution are in tandem.

One of the pillars of New Capitalism is social development, and according to the PM, “Web3 and blockchain technology are the foundation for solving social issues.”

Kishida further pledged to facilitate investors’ access to Japanese blockchain companies, stating that his government has “implemented concrete measures, such as tax reforms and legal reforms, to facilitate fundraising for Web3 startups.”

The Japanese government is following through. Earlier this year, it proposed a new bill that allows venture capital (VC) funds to hold digital assets issued by Web3 startups, opening up new fundraising avenues for local firms.

It’s not the first time Kishida has touted blockchain as critical to his transformation plans. Last year, he urged Japanese companies to invest in the metaverse and make the country a global hub.

The premier’s friendly stance has encouraged more companies to explore blockchain and digital asset solutions. In the past year, most of the country’s largest banks have launched stablecoin projects. The latest was Nomura Bank, a subsidiary of Japan’s largest brokerage, which announced stablecoins backed by the yen and the U.S. dollar in June. In April, Sony Bank and Hokkoku Bank also announced similar stablecoins projects.

Beyond tokens, Japanese firms are exploring blockchain in tokenization, recycling, digital bonds, carbon insets and digital identity.

The Bank of Japan (BOJ) is also conducting trials for the digital yen, although the central bank digital currency (CBDC) hasn’t been deployed on a blockchain platform.

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