The Role of Emerging Technologies in Japan’s National Economic Strategy

Funding the Commons Tokyo 2024 https://www.youtube.com/watch?v=86kFloyfDtY&list=PL3C6eF-zu5AYohNL1ZgOBqlwwJ29x-lTO&index=12 LDP Taira Masaaki summary Role of Councilor Masaaki Taira

• He chaired the "AI," "Web3," and "Fusion Energy" project teams at the Liberal Democratic Party of Japan, where he led policy initiatives.
• A white paper on Web3 and AI is formulated every year, and an English version is also available.

Japanese tax system development in the Web3 area

• Mark-to-Market Taxation Issues for Self-Issued Tokens
  • Eliminates the problem of taxing tokens on hand at fair market value when tokens are issued on the blockchain.
• Market Value Taxation Issues for Tokens Issued by Other Companies
  • It also solves the problem of large companies and others being taxed when they hold startup tokens.
• Future Issues: Capital Gains Taxation and ETFs
  • Crypto assets have not yet been "treated as securities and taxed separately," which will be a major theme in the year-end tax reform.
  • The current situation where ETFs containing crypto assets are "ineligible products" is also an issue for consideration.

Legal development of DAOs

• Legal establishment and operation in Japan in the form of an LLC (limited liability company) type DAO is now possible.
• Crypto asset investment through LPS (Limited Partnership for Investment) is also already legal.

Revaluation of regional and cultural values through the use of NFT

• Example: Niseko early morning lift ticket converted to NFT → originally 5,000 yen sells for 90,000 yen, etc. The value of the experience can be raised to a global price.
• The concept is to convert Japan's unique analog values, such as cherry blossoms and traditional festivals, into NFT and offer them to the world at a high unit price.
• Consider initiatives like the "Cool Japan NFT Marketplace" in the wake of the Osaka Expo.

Hometown and NFT

• NFTing unique local experiences → offering them as return gifts → revitalizing the region and supplementing local finances.
• Ideas for a Tokyo version (e.g., Digital Tokyo NFT) are also being explored.

Regional Development through DAOs

• The Nishikigoi NFT of Yamakoshi Village (Yamakoshi DAO) is an advanced example of a mechanism to solicit funds and ideas from outside.
  • Related: Tackling East Asia's Population Decline Issues with Local Coop's Subsystem for Local Governance.
• A model that enlivens the community through digital village participation is being realized.

Relationship between AI and Web3

• With the advent of generative AI, it is not the "end of Web 3," but rather blockchain and AI will mutually develop.
• More diverse examples are expected in the future, especially in the gaming field.

Conclusion.

• The Japanese government and LDP plan to support both Web3 and AI.
• Through policy advocacy and tax reform, we will promote innovation and regional development.

private chat

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- Web3Taxation problems prevent young people from starting businesses in Japan - They go to Singapore or Dubai. - 1: [Governance Token](/en/Governance%20Token) is [marked to market](/en/marked%20to%20market) and taxed. - 2: Traditional companies come in and open innovation - This is when the issue of fair market value for ownership of tokens issued by others arises. - Maybe it's an accounting issue. - 3: The issue of unclear legal status of DAOs - [Limited Liability Company Type DAO](/en/Limited%20Liability%20Company%20Type%20DAO). - These are already in the process of being legislated through policy recommendations and are now positioned as issues that have been cleared. - as yet - A: Capital gains taxation - Crypto assets are miscellaneous income because they are not securities. - Discussion of tax reform at the end of the year, effective 4/1 next year. - Whether crypto assets can be treated like securities and subject to so-called "separate taxation" is a major issue in the year-end tax reform. - B: ETF - I want to invest in ETH and GTC - But in Japan, it would be ineligible securities.

Raise the value of Japanese analog to a global level

• Powder Snow at Niseko Ski Resort
• Issue fast passes 15 minutes early
• Sold NFT for $5,000 but resold for $90,000.
• The value of the experience of having the powder snow all to yourself is subjective.
  • The value is not determined by the majority in Japan, but by the few who buy the most.
  • But the Japanese sellers do not have that buyer's perspective, so they price inappropriately.
  • The essence of NFT-ization: maximizing subjective value
    • Prices that are considered high from a Japanese perspective may be traded at a higher price from an overseas perspective as "the value of a unique experience.
    • Because NFTs have a standardized secondary distribution (resale) mechanism, "true value" above the initial price is likely to appear.
• 35 years of deflation with "good products at low prices
  • Let the global market put a price on it.
  • - Due to 35 years of deflation, pricing tends to be always modest. - In order to break this stereotype, the idea of directly capturing overseas demand through NFT is important.
• Osaka Expo
  • There is a plan and concept to promote Japan's "analog value" as NFT, taking advantage of the timing of the increase in overseas visitors at the Osaka Expo in 2025.
  • Specifically, we are considering setting up a place like the "Cool Japan NFT Marketplace" where hands-on NFTs can be bought and sold from Japan and abroad.

Local governments are in financial difficulty

• Furusato tax deducts donations to local governments from income tax
• Returned goods include beef, crab, etc.
  • It would be a commodity.
• Toward a global price tag and funding for a unique local experience.
• Experience Value" x "Global Market" = Local Economic Revitalization
  • As in the case of Niseko, Japan's original attractions such as snow quality, traditional culture, festivals, and nature should be marketed as NFT and priced in the global market.
  • This will generate revenue for the region and benefit local finances.
• Tokyo is still being taken
  • Digital Metropolitan at NFT -> Special Experience Rights for Museum Night

DAOs to solve local issues

• Tackling East Asia’s Population Decline Issues with Local Coop’s Subsystem for Local Governance

• Discussions among local people alone do not produce good ideas.

  • Need an outside perspective, a young person's perspective, an out-of-the-box idea.

• People from all over the world join DAO to become digital villagers and work together to plan local revitalization projects.

• Web3 is wacky. but blockchain and AI are evolving in parallel.

• Complementing each other, new services and business models are expected to emerge in the future.

TAIRAMASAAKI I will be speaking at Funding The Commons Tokyo@UN University! I will talk about web3 technologies that solve Japan's problems. Today at 14:00.

18x18Aho Mr. Taira.

Examples of Utilization

homata I think the hotel stay rights and early entry rights to ski resorts would be a good hint! Niseko, Promoting Smart Resorts, Launched the Second Phase of "Niseko Powder Token", the First Ski NFT in Japan

• Niseko Promoting Smart Resorts Niseko Launches Second Niseko Powder Token, the First Ski NFT in Japan | HashPort Corporation Press Release
  • Selling in a global market will result in a global price.
  • Regional Development by NFT

TAIRAMASAAKI David Casey (CEO of Funding the Commons) in conversation with

Web3 and NFT Strategy - The Japanese government has positioned Web3 as a growth strategy and discussed the possibility of using NFT to raise the value of analog experiences to global prices. - By converting "analog values" such as traditional culture and local tourism into NFT, we aim to revitalize the local economy and increase tax revenues.

Regulations and Regulation Status

• Referring to the case of FTX Japan's bankruptcy, he introduced that Japan's financial and crypto asset regulations have a strong asset protection mechanism.
• The government will provide direction on how to support startups, resolve issues with the tax system and auditing firms, and be flexible in using guidelines (soft law).

Public Use of Blockchain

• In the government's promotion of digital government (government cloud and future use of AI), he mentioned the introduction of blockchain in base registries, such as land registries, and its possible use in voting systems.

Japan's Approach to AI

• The EU is in the process of developing hard law AI regulations, while the U.S. is responding with a presidential decree and voluntary commitments from Big Tech.
• Japan's policy is to "cover the areas that can be adequately dealt with by existing laws and newly regulate only those areas that are lacking.
• Emphasizes a strategy to attract human and financial resources by creating an environment that is more flexible and easier to learn and implement AI than in other countries.
• We aim to be a low-maker that's easy to talk to, that increases predictability, and that robots and AI are our friends."
  • That it is important to increase the predictability of government policy because it is a risk if it is unforeseeable in the operation of a company.

Other Technology and Energy Policy

• Touch on future energy policy initiatives, including wind power and fusion, and collaboration with the U.K. and U.S.
• In general, the Japanese government has shown a desire to accelerate innovation while balancing technology and regulation.

private chat

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