Enterprise Ethereum Panel | Tourism, Local Development, Government

[Music] Now, before we move on to the next session, if you don't mind, the people standing at the back, please come to the front. Yes, there's space at the front now, is that alright? Yes, then we will move on to the next channel, the discussion. Next, we will be discussing the topic of tourism broadcasting administration, and we would like to hear from a slightly different perspective. Yes, this time we have four people, please.

Yes, then we would like you to introduce yourselves individually. Is that alright? Yes, first, we have Mr. Sho Takahashi from Japan Airlines Co., Ltd.

and Mr. Koichi Kishii from Hakuhodo Co., Ltd. It's a pleasure to meet you. Thank you.

Yes, please keep it to about a minute. So, hello, my name is Takahashi from Japan Airlines, it's a pleasure to meet you. I am currently in the Business Creation Strategy Department of Japan Airlines, which is now called the Business Development Department, and it is the section that thinks about new businesses for the JAL Group and things like that. While it is a company that is central to our business, it is naturally a business that has been greatly affected by the recent pandemic, so I belong to a section whose mission is to think of new businesses that will become pillars of revenue. Thank you for having me.

Yes, hello, I am Kishii from Hakuhodo. In terms of my job, I am in sales, and I usually work on advertising, public relations, and marketing communications for JAL, but regarding this public NFT project, I have a completely different relationship with JAL, and we are working together as partners on business development. Thank you for having me today. I am Nozaki from the Digital Agency, and I am in charge of Web3 and AI. Please turn to the next page, and at the Digital Agency, since around last summer, there has been a growing momentum in the government to create an environment for the development of Web3, and I took up my post last summer, and I have received a lot of input from Kawaguchi as an advisor.

At the end of last year, I compiled a report called the Web3 Study Group Report. It's a thick document, about 70 pages in Japanese and 100 pages in English, so it doesn't really summarize the overall picture. If you have the opportunity, I hope you'll take a look. Thank you for joining me today. Yes, I'm Kawaguchi from Deloitte.

Please turn to the next page. I'd like to briefly introduce what we at Deloitte do. As a consulting company, we do analysis, research, and advice, of course, but we also have several areas of focus. The first one at the top is rulemaking, and as Mr. Nozaki just introduced, we assisted the Digital Agency with their Web3.

0 research. I think that these so-called Web3 and blockchain services are like building roads for a car, and that's a very important initiative. On the other hand, building the car itself is also important, as it needs to be able to run on the road, so we are also putting effort into this area. The second one at the bottom is called Creators, and we are... I myself believe that creating things is extremely important, and as something we can do to help, we at Deloitte are providing technology to a company called Visual, which is creating a global cinema money market.

We've even provided engineers to build NFTs, and we're providing end-to-end support from development to the concept of actually using them. Finally, this is related to the theme of the first session on blockchain, but as one way to use traceability when using not only public chains but also private consortium chains, I think that themes like SDGs are important, so when thinking about better ways to use it, we're working on a project with Jaiko about a way to procure chocolate without automatic loading. Well, we're creating roads and cars like this, and we hope that we can also liven up this industry as a part of it. Thank you very much for today. Yes, thank you.

Then, I would like to be the main moderator for this session. I think so, but first of all, let's go back to the paper that JAL and Hakuhodo recommended earlier, the Public NFT initiative. Could you briefly explain what kind of project it is? [Music] I'll explain it then. Our NFT project is a project that utilizes assets located in local areas of Japan to increase the number of people connected to those areas.

Japan is a country with a declining population, as you know, and amid this decline in population, local areas are facing a very difficult situation. So, through our NFTs, we aim to increase the number of fans of these areas, not only domestically but also internationally, increasing the number of people connected to them both domestically and internationally, and ultimately contributing to the revitalization of these areas. Next, for your reference, we have two types of NFTs that we sell, and one of them is set in Amami, Kagoshima Prefecture, in Amami City. It's an NFT, and we're working with a brown sugar shochu distillery, and together with the NFT holders, we'll age the shochu together, and that's the utility we're doing this time. NFT project Kagoshima Amami Andre D This shochu NFT and without the I think it would take too long to explain, so I'll stop here for now.

Thank you. The name "public NFT" is very bold and interesting, and I thought it was interesting to hear about it, but I think the increase in the number of people involved in the community was a very important point in what you said. I think it means creating a continuous relationship rather than just a one-time trip, and in implementing that mechanism, since blockchain is the theme of today's Can YouTalktoday, I think the point we used NF this time was its compatibility with the community. For people to go to the same place again and again A reason is necessary, and that reason is, of course, that person, and also, I think that wonderful assets are also necessary, but I think that people are also quite important, and I think that connections with people are not just about going once, but also before and after the trip, and that by connecting in those ways, the love can grow even stronger. With this award-winning experiment, we hypothesized that love for the region can deepen more and more through such communities, and this time we used NFTs as a means to that end.

[Music] Thank you. The next question will probably be for Mr. Kishii, but how did you involve people? As I mentioned earlier, I have a role in Setagaya Ward, and the local Chamber of Commerce and Industry members and civil servants are working very hard, but to be honest, I think it can be difficult to get them to understand NFTs and blockchain and work together with us. Could you tell us about any difficulties you've encountered in getting involved?

Getting involved is difficult. First of all, it's hard to get involved. In this demonstration experiment, the important players and partners are the local government and local companies. [Music] The companies in the magnetic field have issues such as succession problems, and they feel a great sense of crisis regarding the revitalization of rural areas with declining populations, so they are very keen to learn about blockchain even if they don't know anything about it. On the other hand, if there are any digital experts here, I'll speak with the understanding that I'm not talking about all local governments, but the literacy regarding blockchain and digital is quite difficult.

When we talk about this, they say that while we also acknowledge that revitalizing the region and increasing the population is a challenge, we thought that someone would probably do something digitally someday. Then JAL and Hakord came along and did it digitally. Thank you very much. That's the kind of feeling we get. So I think there is a very big gap in that regard.

Let me just make one excuse. I'm not talking about Amami City, but about this project. I've spoken to various people in Amami and Mie, but these are just one or two examples. Thank you. Now we've talked about collaboration between local government and private sectors.

On the other hand, the keyword Web3 seems to be gaining a lot of momentum in the central government. Last week, the Liberal Democratic Party's Web3 PT report came out and became a hot topic, including some quite in-depth tax reform proposals. There are many foreigners in the audience today, and there seems to be a great deal of expectation that Web3 projects in Japan will develop significantly in the future. [Music] In this context, the Digital Agency released a Web3 report in December of last year. I found it very interesting, and I've looked through it myself.

I think it's very comprehensive, and I felt that the government is determined to put effort into this field. We have two people here today who were involved in this report, so since it would be too long to cover the whole thing, could you please give us a brief summary of the key points? First, Mr. Nozaki, could you please go ahead? Aso Happy Center Yes, thank you.

First of all, in April of last year, the Liberal Democratic Party released a white paper stating that they would like to make Japan a Web3 nation, and the momentum has been building. Since then, the government has taken that message to heart and has begun discussions on how to develop a healthy Web3 and what kind of environment would be desirable for that. In Japan, as has been discussed earlier, there are still various social issues such as the declining population in rural areas, but on the other hand, as was mentioned in a previous session, there are many promising content, so we discussed whether it would be possible to develop or improve such content using Web3 technology. [Music] Regarding Web3 technology, by using tokens, it is possible to design incentives in detail, which could create unprecedented connections between people, and also allow for various designs in community management, which could solve the social problems that Japan has been facing. The government is hopeful that there is a possibility that it can be done.

Andrectionpeople Andy Loveafter Thank you. I understand that Mr. Kawaguchi was deeply involved in the operation of this research group as the secretariat. If there are any points that you would particularly like to emphasize from the discussions in the report, please tell us. It is Mr.

Kawaguchi. I think there are two. One is the breadth of the theme coverage. When I say coverage here, I mean that the subject of the survey is Web3, as the title suggests, so when we were deciding what fields to cover, we did n't just focus on digital assets targeting NFTs, but also on promising themes such as DAOs and DIDs that are coming in the future. It is difficult to predict how these will develop over the next few years, but I am proud that we were able to discuss these things as well, and that it was very rewarding and will lead to future developments.

ID That's right. The second is the passion, or the feelings and passion of those who are considering the regulations. I thought I'd take this opportunity to share my thoughts on this matter, and I talked about the concept of roads. However, ultimately, if cars don't drive, there's nothing we can do, but on the other hand, if cars drive, traffic jams and accidents will occur, which is also bad, so we want to encourage cars to drive by creating these roads, but at the same time, we need to consider what kind of restrictions need to be put in place to prevent accidents, and finding the right balance here is very difficult, and there has been much discussion in research and academia. One of the representative examples of this is what Mr.

Iwanaga mentioned earlier: whether NFTs with revenue sharing are securities or not. Where do we draw the boundary between securities and NFTs, which can seem ambiguous in a sense? That's where the real difficulty lies in deciding why these regulations are absolutely necessary and why they must be implemented. The expert panel has been meeting almost every week despite their busy schedules to discuss this very big theme, and I think it's a rare undertaking. Sorry, this is getting a bit long.

When we talk about creating regulations... I think the balance of looking at the food while writing and compiling it into the fifth paragraph of the report, after considering all of that, is something that will be worth referring to. I'm sorry, I see, thank you. Time is running out, so from here on out, I'll just say a few things. Since we have various government officials here, I'd like to ask two questions that might be a bit surprising, and then have them answer and comment in turn, and finally have Mr.

Ishii wrap things up. One of the two things is that in this report, there was a mention of whether it would be possible to issue something like a My Number Card, something like a KYC element, as a VC, or verifiable dénional. In the world of web3, anonymous wallets are attractive, but at the same time, there are many things that cannot be done at home, so for example, if the government could become a point of contact to cooperate to some extent with KY authentication for wallets, then I think that would be a good idea. The first question is what you think about that. The second question is the opposite, but there are criticisms that the culture of Web3 and the current situation where the government is trying to promote it are getting mixed up.

Web3 started out from an anti-establishment, anti-government position, so there may be people within the company who point out the contradiction in the government promoting it. I would like you to answer these two points, how you would respond to such concerns. [Music] Thank you. I think those two questions are conceptually related, so I may have to answer them together. First of all, the Web3 worldview is that people all over the world are connected through anonymity, and each has their own incentives to do various things through technology.

That is my understanding of the Web3 worldview. As for how the government will be involved in that, first of all, as you asked in the first question, how will trust be established regarding various identities and wallets? Regarding what additional measures will be taken, I think one issue to consider is what role the government can play as a national trust anchor. And I think that how electronic authentication systems such as My Number cards will be utilized will be an issue to consider in the future. The second point is the overall worldview.

However, in the context of a decentralized community, I think it is important that the government, not just the government, becomes a part of the community and plays its role with various stakeholders. For example, the government has the issue of regulations, which have not been discussed yet, and how to resolve the regulatory issues. The business sector has the issue of how to uncover the business needs for using these technologies and how to integrate them. And the academic sector has the issue of how to theoretically ensure security using cryptography and such. We believe that it is extremely important for stakeholders to work together to move forward in the Web3 world.

Lastly, we are working on two initiatives to collaborate in this multi-stakeholder community. First, globally, there is something called BEGIN, the Blockchain Governance Initiative Network, which was launched three years ago. There, both online and in person, people from academia and government gather globally to discuss various issues surrounding blockchain. Participation is free, so we would like you to join this community. Secondly, we have revived our Web3 research group and have just started an initiative to use the community to facilitate various forms of communication, mainly among Japanese people.

That's all for now. Thank you very much. I'm sorry, but we only have two minutes left. I'm sorry, but if my question was complicated, we would appreciate it if you could continue the networking session. We'll have Mr.

Ishii give his opinion at the meeting, and then we'll wrap things up on time, or... but would it be alright if I asked him to say a few words? Yes, please. That's fine, or you can say something to the whole group. Yes, that's fine.

I'll try my best to keep it brief, but in relation to the question you just asked about the meeting, if I were to add some comments, I would say that the world view of blockchain has been product-out, or rather, people have been drawn together by the enthusiasm for this new technology and what it can do. It's been a phase where the ideals, how should I put it, have been leading the way, but now there are all sorts of people in the world forming a society, and this is already a fact, and the question is whether it will spread within this, or whether a market-in approach will be necessary in the future, and I think this is inevitable. Yes, sorry. Various countries are taking various approaches to this, but one of Japan's characteristics is that it already has an established regulatory system, and it is very strong here, and secondly, the government administration is very positive about this, which is very unique, and within Deloitte... Even after talking with various overseas colleagues, I feel that this is unique, so I feel it has great potential for the future.

Actually, as Mr. Hata from Square Enix mentioned earlier, the sense of familiarity remains, and I would like to touch on that as well, but I would like to talk about it in relation to the first question. The biggest problem we got stuck on regarding this issue was the anonymity and, what do you call, the versatility of Web3. When we talk about Web3 technology to local governments, one of the contexts is digital resident registration, and the other is the context of this Aviation Edifice publication. We talked about it in these two contexts.

As Mr. Takahashi mentioned earlier, one of the reasons we used NFTs this time is that it allows us to create a community, but another is that it is a unique form of proof, so when aiming to create a network of people with connections to the region, for example, with the Amami FT mentioned earlier, you can get an Amami NFT while on board, and if you visit Amami many times during the three years leading up to that, I wrote a story about how I came to love Amami, and how this NFT became something like an Amami citizen certificate. Shochu AFTER However, if we talk about this in the context of digital resident registration, then there are various problems for the local government, such as how to handle administrative services, how to handle My Number, and how to handle taxes, and various departments get involved, so it does n't move forward. However, in the reference context, it is because local governments want to accept more and more people, so they become one. I did it in the context of tourism, but the real number one goal is for people from both within Japan and abroad to have something like a digital resident registration, a digital passport, which is a unique form of proof, and that is why we use NFTs.

This is what I really wanted to show, but the current situation where it is difficult to show is the problem, or rather, it is a challenge that must be overcome. [Music] Finally, I will try to keep it brief, but when it comes to NFTs and Web3, the conversation tends to become about being confined to the digital space, and I think many people have that impression. I think that the project we've undertaken this time certainly has those characteristics, but it's not just that. Ultimately, we're trying to bring this new technology as value to real places and more physical communication. As mentioned earlier, in the anonymous world of digital, you can do things anonymously, but what happens when it becomes real?

I think there are still quite a few challenges and difficulties, but we also felt that we wouldn't know until we tried, so I'd like to add a little more about the meaning of this challenge as well as why we undertook this project. As for comments, well, what should I say? I think there's a demand for gradually increasing the area where the DAO operates, and as that gradually increases, a history is left behind, and it becomes clear how decisions were made. There are of course things that can't be done that way, but I think we'll gradually increase it, as mentioned earlier. As Mr.

Kishi mentioned, it's possible that it could become something like a resident ID without you even realizing it, and I think that kind of feature is necessary. Okay, so this channel is now Intercom Russian thishone. Thank you everyone. This concludes today's discussion. Now we will move on to the much-anticipated social gathering.

Everything is ready, so please take photos from the side in a buffet style. You can also use the area outside this door, so please feel free to take some drinks and food from there. You will also have the opportunity to talk with the speakers, so please feel free to say hello.