Japan Attempts Economic Transformation Through Web3

As the world's third largest economy, Japan has faced numerous challenges in recent years. Issues such as the recurring COVID-19 pandemic, debt crisis, and aging population have plunged its economy into difficulties. To turn the situation around, Japan is pinning its hopes on a new generation of internet technologies represented by Web3, attempting to achieve economic transformation and breakthroughs in this field.

Looking back at the history of Japan's economic development, we can see that it has experienced multiple ups and downs. After World War II, Japan created an economic growth miracle with strong administrative intervention and favorable geopolitical conditions. After the collapse of the bubble economy in the 1990s, Japan gradually emerged from the trough through industrial transfer and technological innovation, establishing itself as the world's third-largest economy.

However, in the field of the internet, Japan's performance has been less than satisfactory. Among the world's top 20 internet companies, only Rakuten from Japan made the list. The reasons for this situation include: the limited size of the domestic market, insufficient innovation atmosphere, and missing the key period of internet development. This has resulted in Japan being in a backward position in the era of mobile internet.

To change this situation, the Japanese government is actively promoting the development of Web3. Prime Minister Fumio Kishida has repeatedly expressed support for Web3 and regards it as a new driving force for economic growth. Japan has also enacted the world's first stablecoin legislation and plans to comprehensively improve the Web3 environment. Driven by policy, Japan's Web3 market has shown vitality, with numerous enterprises and investment institutions actively entering this field.

However, Japan still faces many challenges in achieving a leapfrog development in the Web3 field. Factors such as a limited market size, constraints of an innovation culture, and an aging population structure are all hindering the development of Web3 in Japan. However, based on historical experience, Japan is expected to achieve new breakthroughs in the Web3 field under the dual role of government policy promotion and corporate transformation. Although it may be difficult to achieve significant results in the short term, Japan's efforts in the Web3 field are worth paying attention to.