The strength of Rakuten Wallet, expanding the base of Web 3.0 in a huge economy│Interview with Yasuhiro Sasaki

It is no exaggeration to say that Rakuten is now a household name, with a presence in a diverse range of industries, including e-commerce, finance, telecommunications and sports. The same can be said of the Web 3.0 industry.

Rakuten NFT, released in February last year, attracted a great deal of attention even before the service was launched. Rakuten NFT has been well received for its beginner-friendly design, including easy use with Rakuten ID and the ability to settle payments using credit cards in addition to cryptographic assets.

Above all, the fact that Rakuten points, a key element of the huge Rakuten economic zone, can be used and credit card payments can be used to accumulate points, also creates opportunities for users to use the service.

Rakuten has been active in the crypto-asset space since before Web 3.0 became a buzzword, through its crypto-asset exchange Rakuten Wallet. It became a major topic of conversation as ‘that Rakuten has entered the crypto asset space’.

Rakuten Wallet, like Rakuten NFT, is characterised by its ability to use Rakuten points. As crypto assets can be purchased with points accumulated from daily purchases, the barrier to entry is relatively low for beginners. Furthermore, Rakuten Wallet allows users to charge their crypto assets to Rakuten Cash, which can be used at Rakuten Ichiba, Rakuten Travel, etc.

This allows for substantial crypto asset payments using Bitcoin, Ethereum and other crypto assets. This is an important initiative for the spread of crypto asset payments in Japan and for expanding the scope of Web 3.0.

Rakuten Wallet is attracting attention as a crypto asset exchange under the well-known Rakuten brand, but what strategy will it pursue in the future? It will also be interesting to see Rakuten's view on Web 3.0.

We spoke to Yasuhiro Sasaki, who supports Rakuten Wallet as CIO and executive officer, about the future of the exchange and his views on Web 3.0.

Mr Sasaki joined Rakuten Wallet in 2018 and is in charge of systems and security. With interest in security in particular growing year by year, what is Mr Sasaki's perspective on the business?

Crypto asset exchangers hold the key to promoting Web 3.0.

They will contribute to the creation of a secure system based on lessons learnt in the past, and to the development of laws and the environment.

-- Mr Sasaki, what is your view of the current state of crypto assets and the Web 3.0 domain in 2023, and what do you think will happen in the future?

Yasuhiro Sasaki: I believe that Web 3.0 based on blockchain technology has the potential to develop as a new need in the future, but it may still be difficult for ordinary users to get an image of how it can be used and utilised. We believe that it may be difficult for ordinary users to grasp the image of how it can be used and utilised.

In addition, it is assumed that the token management and maintenance required for blockchain in Web 3.0 will be difficult and dangerous. Given these circumstances, we believe that it will take a certain period of time for the technology to spread widely.

We believe that the process of penetration will be one of the keys to the promotion of this area, as crypto asset exchangers have a lot of experience in the technical aspects of crypto asset exchange, which, in addition to legal preparations, requires proficiency on the part of the service provider.

--Rakuten Group has been increasing its presence in the Web 3.0 area year by year, such as with the launch of Rakuten NFT last year. What are your plans for Rakuten Wallet in the future?

SASAKI: Rakuten Wallet started its services as a crypto-asset exchanger in August 2019. As a crypto asset service, we are proceeding with the necessary procedures in terms of governance and systems under the jurisdiction of the Financial Services Agency in order to handle crypto assets safely, and we will definitely consider what we can do in the Web 3.0 area in the future based on the experience we have gained in this process.

--What do you think is necessary for Japan to lead the world in the Web 3.0 domain, and what do you think you can contribute to the development of the industry?

SASAKI: As stated in the web3 white paper published in April 2023, we recognise that crypto asset exchangers in Japan are promoting proper wallet management and customer protection in accordance with the Funds Settlement Act.

We believe that this is the result of a response to lessons learnt in the past in the crypto asset industry, and that Japan is in a position to lead the world in the use of similar technologies in the Web 3.0 domain.

To this end, I recognise that it is important to promote the development of legislation similar to that of the crypto asset exchange industry in the Web 3.0 area. For my part, I believe that I can contribute to the development of safe systems in the Web 3.0 area by utilising the knowledge I have gained as a crypto asset exchanger, including in terms of systems and security.

I am currently in charge of the security and systems subcommittee of the Japan Crypto Asset Business Association (JCBA), and have just started discussions on the security and systems aspects of Web 3.0 in each month. I would be happy to play a role in promoting active discussions in the industry as a whole, as well as in the public and private sectors, and to share knowledge in this area.



Profile.

Yasuhiro Sasaki

After graduating from the Tokyo Institute of Technology in 2001, Yasuhiro Sasaki joined an IT company and joined Rakuten Group, Inc. in 2017. He will also be in charge of the Business Management Department from 2023. He is also Chairman of the Security and Systems Division of the Japan Crypto Asset Business Association.



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