NFTs
Japanese village leverages NFTs to tackle issues linked to population aging
The Japanese village of Yamakoshi is using non-fungible tokens (NFTs) to address the challenge of an aging population, raising awareness of the issue and generating nearly half a million dollars along the way.
The village is offer digital citizenship to holders of its digital collectibles, the Nishikigoi NFT collection, named after a breed of koi carp indigenous to the region. Since the collection’s launch in 2021, at the height of the NFT craze, Yamakoshi has attracted just over 1,700 digital citizens to bolster its dwindling population.
To date, the collection has netted the small village about $423,000, with the funds going toward restoring older citizens and a number of community initiatives. The report highlighted the channeling of funds to support a sports day for village pupils, amid plans to increase the reach of the initiative across public services.
For Yamakoshi’s 740 permanent residents, access to Nishikigoi tokens is free, but individuals seeking digital citizenship will pay the minimum price of 0.0318 ETH. Details in the project’s technical document indicate plans to increase village populations from less than 800 to more than 10,000 by leveraging digital collectibles.
Using NFTs to raise funds for an aging population is a new strategy, but it indicates a measure of promise. Yuri Group says in a report that digital collectibles could generate up to $500 million for the cause if the Yamakoshi experiment achieves its goals and expands to other municipalities.
“If their strategy works and expands to other villages, we estimate that rural Japan could seek to raise funds in the region of half a billion dollars, while also testing a new wave of social technology with global appeal,” reads one report. of the Yuri Group.
Japan has a long-standing problem with an aging population, worsened by falling birth rates and high life expectancy levels. One report noted that more than 800 municipalities in Japan are at serious risk of disappearing due to a population imbalance, but emerging technologies may offer a way out for the region.
There are several challenges associated with leaning towards NFTs, including language barriers from foreign digital citizens and voter apathy associated with running a decentralized autonomous organization. The falling value of digital collectibles is also a major challenge plaguing the project, but one thriving entertainment culture in Japan could continue to drive its adoption in the country.
Japan explores NFTs
Japan has been exploring NFT use cases before the offering went mainstream in 2021, with Prime Minister Fumio Kishida including it in his digital transformation strategy. At the time, Kishida confirmed plans to turn to digital collectibles to reward the country’s top-performing mayors.
The ruling government has since provided funding to “promote efforts to expand the use of Web 3.0 services that utilize the metaverse and NFTs.” stimulating private companies to join the fray. Local companies like Mitsubishi UFJ Financial Group (NASDAQ:MUFG) and SBI (NASDAQ:SBHGF) have seen their subsidiaries dabble in NFTs, mirroring the national government’s efforts.
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