The Japanese government has been one of the first to issue non-fungible tokens (NFTs) as a form of complementary reward to recognize the work of local authorities who have excelled in using digital technology to solve local problems.
The awards were handed out by the Cabinet Secretariat, a government agency led by Chief National Cabinet Secretary Hirokazu Matsuno, during the ceremony. “Summer Digi Denkoshien 2022”. The event was also attended by the country’s prime minister, Fumio Kishida, Coinpost reported.
Seven mayors received recognition for the ideas of their cities focused on the digital economy. Among them, the mayor of Sakata, in Yamagata prefecture, whose administration suggested using electric vehicles for local deliveries. An NFT was also awarded to Maebashi in Gunma Prefecture for its idea of a platform that uses mobile device cameras to track changes in traffic conditions in real time.
NFTs were issued on the Ethereum blockchain using the proof of attendance protocol (POAP). The issued NFTs are non-transferable and have been developed in a way that makes them suitable for commemoration. Being non-transferable, these NFTs cannot be traded on the secondary market.
The NFTs were issued using Indiesquare’s low-cost blockchain platform, Hazama Base. The same platform was previously used to issue and distribute NFTs at an event held by the Liberal Democratic Party Youth Office.
Japan is known as a country in favor of technology and innovation, where cryptocurrencies have been regulated by the government as a commercial asset. The Prime Minister of the country has also shared an interest in the use of NFTs on several occasions in the past. Therefore, the recent government initiative could become a tradition to follow.
NFTs gained a lot of traction during the peak of the bull run, however, with the cryptocurrency market crashing, the NFT market has also seen a sharp decline in interest. While many experts are quick to dismiss NFTs as a bull run fueled mania, initiatives taken by the Japanese government highlight the nascent technology’s adoption beyond the market.
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