The Japanese government has become one of the first to issue non-vulnerable tokens (NFTs) as additional rewards to recognize the work of local officials who have excelled in using digital technology to solve environmental challenges.
The awards were presented at the “Summer Digi Denkoshien 2022” ceremony by the Cabinet Secretariat, a government agency headed by the country’s Chief Cabinet Secretary Hirokazu Matsuno. Coinpost reports that the country’s Prime Minister Fumio Kishidam was also present at the event.
Seven mayors were recognized for their cities’ ideas on the digital economy. Among them was the mayor of Yamagata Prefecture, Sakata, whose administration proposed the use of electric vehicles for local transportation. The NFT award was given to Mabashi in Gunma Prefecture for their proposal for a platform that uses cameras on mobile devices to monitor traffic conditions in real time.
NFTs are issued on the Ethereum blockchain using the Proof of Attribution Protocol (POAP). The released NFTs are non-transferable and are designed in such a way that they are suitable for commemoration. Being non-transferable, these NFTs cannot be traded on the secondary market.
The NFTs were released using Hazama Base, Inc.’s low-cost blockchain platform. A similar platform was earlier used to issue and distribute NFTs at an event held by the Youth Bureau of the Liberal Democratic Party.
Related: Japan plans to implement tax reforms to prevent capital flight of crypto startups.
Japan is known as a pro-technology and innovation country, where crypto is regulated by the government as a commercial asset. The Prime Minister of the country has expressed interest in the use of NFTs on several occasions in the past. So the recent initiative from the government can be a tradition to carry forward.
NFTs gained a lot of traction during the peak of the bull run, however, with the collapse of the crypto market, the NFT market has seen a steep decline in demand. Many researchers point out that the Japanese government’s takeover of NFTs is still in its early stages beyond commercialization, as the hype surrounding NFTs is overwhelming.