- Japan's economic policy drives wealth distribution by focusing on startups, innovation
- The government removed a burdensome tax requirement, which drove innovators out
Japan's Prime Minister Fumio Kishida announced an annual broad policy outline, which includes measures to improve the Web3 use environment and consider user protection at the same time, ultimately transforming the content industry, CoinDesk wrote.
Kishida made these remarks at the WebX conference in Tokyo, which starts today. The country’s leader continues the ruling Liberal Democratic Party's support of Web3.
A new form of capitalism
Kishida pointed out that “Web3 is part of the new form of capitalism,” referring to a one-of-a-kind economic policy introduced by his government. It is aimed at improving growth and driving wealth distribution by focusing on startups, innovation, and digital transformation.
He promised that a leading Japanese company would soon launch an ambitious project, which would create a valuable economic zone in the metaverse.
Embracing Web3
Koichi Haguida, the Liberal Democratic Party's policy research council chairman, spoke just before Kishida. He presented his party's stance towards Web3, saying everyone should support it, even people who are not industry insiders.
Since 2022, a number of politicians in Japan have been working on guidelines and policy for NFTs, DAOs, and stablecoins. They removed a burdensome tax requirement, which was driving innovators out of Japan.
Web3: Pros and cons
Web3 aims to move away from the centralized control of traditional web services, giving more power and ownership to individual users and communities. This can enhance transparency and reduce the influence of large corporations on data and services.
Web3 protocols often prioritize user privacy, as users can control their data more securely through encryption and distributed networks. This could lead to greater trust and confidence in online interactions.
By utilizing cryptocurrencies and blockchain technology, Web3 can enable access to financial services for individuals who are unbanked or underbanked, especially in regions with limited traditional banking infrastructure.
However, the decentralized nature of Web3 can make it more challenging for mainstream users to understand and adopt. Concepts like private keys, wallet management, and blockchain transactions may be daunting for newcomers.
In addition, some blockchain networks face limitations in terms of scalability and transaction throughput, leading to slower transaction times and higher fees during periods of high network activity.
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