Japan has become among the first governments officially adopting non-fungible tokens (NFTs). The Japanese government will issue these NFTs as supplementary rewards that will recognize the efforts made by the local authorities that have succeeded in using digital technologies to solve local issues.
Japan issues NFTs to award local authorities
The Cabinet Secretariat gave out the awards issued by the Japanese government. The Cabinet Secretariat is a government agency spearheaded by the country’s Chief Cabinet Secretary, Hirokazu Matsuno. The awards were issued as part of the “Summer Digi Denkoshien 2022” ceremony. Japan’s Prime Minister, Fumio Kishida, also attended the ceremony.
The awards in question went to seven mayors. These mayors were recognized for the ideas made in their cities regarding the digital economy. Some of the mayors awarded during the event include the mayor of Sakata, Yamagata Prefecture, who was recognized after promoting the use of electric vehicles in running deliveries.
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Another NFT prize also went to Maebashi in the Gunma Prefecture. The NFT reward was given for the mayor’s idea to use the cameras on mobile devices to monitor traffic conditions in real-time.
The NFTs issued to these mayors were created on the Ethereum blockchain. The assets were created using the proof-of-attendance protocol (POAP). These assets cannot be transferred to another person. Additionally, they have been created to make them ideal for commemoration.
These NFTs being non-transferrable means they cannot be sold on the secondary market. The mayors that received them are the only ones that can hold these assets.
The NFTs were also issued using Indiesquare’s low-cost blockchain network known as the Hazama base. This is not the first time the network has been used to issue NFTs. The platform was also used earlier to issue and distribute NFTs at an event hosted by the Liberal Democratic Party Youth Bureau.
Use of digital technologies in Japan
Japan is reputed for its support of technology. The country has also been applauded for supporting innovation, and cryptocurrencies are regulated in the country as a tradeable asset.
The Japanese Prime Minister has shared his support for NFT use on several occasions in the past. Therefore, this initiative by the government could gain widespread adoption in the country.
NFTs have become quite popular during the bull market. However, the recent bear market has also led to the NFT market being on a notable decline, and interest in these assets has also dropped. However, the recent move made by the Japanese government makes a case for using NFTs beyond the rest of the cryptocurrency market.