Japan’s Leap to the Future: Embracing Crypto and Web3

At a time when technological advancements are shaping the economic future of countries around the world, Japan is taking a strategic leap into the Web3 revolution. However, the eastern island nation, once a global powerhouse in various industrial fields such as manufacturing and electronics, has found itself lagging behind, missing out on the rise of Web2 by not producing a single tech giant among the Google, Meta, and Amazon ranks.

However, Japan now seems 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 adoption of Web3 is not just an attempt to regain its economic prowess, but a comprehensive plan to become a global leader in the next phase of Internet evolution. At this point, the Japanese government recently presented its national strategy, which involves the enthusiastic involvement of large companies and highlights the country’s innovative approach to regulation.

Openness of Legislators to Blockchain and Crypto Tech

In April, Japan’s ruling Liberal Democratic Party published a detailed white paper outlining recommendations to boost local crypto adoption. The program – part of Prime Minister Fumio Kishida’s broader strategic vision called “Cool Japan” – aims to promote the use of this new technological paradigm in several sectors and to stimulate innovation in this space. Additionally, as other governments seek to implement more regulations, Japan is actively creating a friendly environment for Web3 businesses to thrive and attract additional foreign investment.

In a recent maintenance, Akihisa Shiozaki, General Secretary of Kishida’s Web3 Strategy Team, said, “The cryptocurrency industry has been led by early adopters, but now it will transition to mass adoption. He pointed out that major Japanese companies have started to enter the market, with mobile operator NTT Docomo recently pledging up to 600 billion yen ($4 billion) in Web3 infrastructure. Not only that, major financial institutions are also looking to issue stablecoins to digitize the economy of the country.

Business adoption of Web3 in Japan is growing

Sony Network Communications, a division of Sony Group, recently teamed up with Astar Network to launch a Web3 incubation program for projects focused 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. Program projects may also be considered for investment from Sony Network Communications.

Similarly, automotive giant Toyota is also digging deeper into the use cases of blockchain technology. Earlier in April, the company hosted a complete Web3 hackathon on the Astar Network to help Toyota formulate more effective team management strategies as well as optimize its business decision-making processes. Regarding the aforementioned developments, Sota Watanabe, the founder of Astar Network, reportedly said:

“A lot of Japanese companies, especially big ones like Toyota, Sony or NTT, would like to work on Web3. The reason is very simple, I guess. Japan was number one. Right? But we completely missed the Web2 revolution Web3 is therefore the next big opportunity for the Japanese economy.

Japan’s economic future looks bright

Despite the enthusiasm and initiatives, there are challenges that Japan must overcome to become a world leader in Web3. The country must produce a revolutionary Web3 company to prevent further contraction of the national economy. Regulatory clarity is also needed to encourage entrepreneurs to enter the market.

Watanabe emphasizes the need for successful global use cases and entrepreneurs who can deliver services globally from day one. “In the age of Web3, we have to do something new. We have to create a very innovative company that can be bigger, like Sony or like Toyota. If we can’t get there, I think our economy is going to shrink… So it’s really important for Japan to make a successful use case,” he pointed out.

So, as we move into an increasingly decentralized future, Japan’s continued success will rely heavily on its rapid adoption of crypto and Web3. In this regard, the country’s strategic initiatives, corporate collaborations and regulatory advances are already paving the way for Japan to become a global leader in the Web3 industry.