"WebX," one of Japan's largest Web 3.0 conferences, was held at the Tokyo International Forum for two days on July 25th and 26th.
With major players in the Web 3.0 field, startups, investors, and government officials from around the world taking to the stage, the event attracted many visitors from Japan and abroad, with long lines forming at the reception desk from early in the morning.
The conference was planned and organized by CoinPost, a domestic cryptocurrency and Web 3 media, and Iolite also participated as a media partner. In this report, the Iolite editorial team will focus on the sessions that they found noteworthy.
At the opening, House of Representatives member Koichi Hagiuda, chairman of the Policy Research Council of the Liberal Democratic Party, gave a speech. Hagiuda said, "We will incorporate environmental issues for promoting Web 3.0 business as a growth strategy in Japan's 'Basic Policy.' The private sector and government will work together on Web 3.0. We will make Japan the hub of the Web 3.0 world."
▶︎LDP member Hagiuda on stage
In the keynote speech that followed, Prime Minister Fumio Kishida appeared on stage via video message.
Prime Minister Kishida commented, "The government will implement the environment for Web 3.0. Blockchain will change the world. We aim to expand the base of ideas." Furthermore, he emphasized that "Japan will be a place where players in the Web 3.0 field can gather and expand Web 3.0 business in the future," and stated that "I strongly expect that major Japanese companies will announce large-scale projects to build a valuable economic sphere in the metaverse space. I have high hopes for Web 3.0 technology that can solve social issues," and expressed the country's intention to focus more than ever on the development of Web 3.0.
▶︎ Prime Minister Kishida appeared on stage with a video message
In the session for government officials, LDP member of the House of Representatives Akihisa Shiozaki met with Salesforce Web3 Studio co-founder Matthew Mark. Mark said that even in the current "crypto winter," "Japan is a hot market," and stated that the global situation is that the main players in Web 3.0 are shifting from blockchain to AI.
In response, Shiozaki said, "There is a global trend to stop the evolution of AI, but Japan has decided to support new technologies. Japan will take the lead in AI technology," emphasizing the country's intention to continue focusing on the AI field.
▶︎From the left: Mark, LDP's Shiozaki
A session that drew many participants on the morning of the 25th was a special talk between YugaLabs CEO Alegre Daniel and Itagaki Kazuka, assistant director of the Ministry of Economy, Trade and Industry's Web 3.0 Policy Promotion Office.
Alegre Daniel is president and COO of Activision Blizzard, the world's third largest video game company, and joined YugaLabs in the first half of 2023. Daniel said that in the four months since he became CEO, "I realized that games will change dramatically with Web 3.0." This seems to be due to the development of communities and persona design in games.
On the other hand, Itagaki said that the government plans to build a good business environment for Web 3.0, saying, "Japan has a lot of IP assets. There are many people with high potential. When trying to realize a dream job, sometimes you have to give up because of the lack of profitability, but with Web 3.0, you can issue tokens. With Web 3.0 technology, you can go out into the world from Japan. We can pool our funds, create new startups, and solve social issues."
Daniel also said that Japan's IP and regulations are advantageous from a global perspective, and that "countries with clear regulations will become world leaders."
▶ From the left: Daniel, METI's Itagaki
After noon, Nishimura Hiroyuki, also known as "Hiroyuki," the founder of "2channel," which had attracted a lot of attention, held a discussion with Kano Yuzo, CEO of cryptocurrency exchange bitFlyer, on the theme of "Is Bitcoin and Web 3 necessary in the world?" The venue was filled with standing room only, so admission was restricted. The discussion was moderated by Hiroki Takahashi, who runs the YouTube channel "ReHacQ."
Hiroyuki said of crypto assets, "Just like games, they are not necessary in society and are not necessarily needed. You don't have to do it. At the moment, if you're told that you can make money, you'll get scammed if you participate. It's rare for them to multiply hundreds of times like Bitcoin."
Kano responded, "In the past, there have been cases where tokens learned about at seminars have multiplied thousands of times. However, they have now reached maturity. For example, Toyota stocks will not multiply by tens of times. It's the same situation," and there were scenes where he agreed with some of the opinions.
Hiroyuki also pointed out the unclear nature of NFTs. At present, he said, "I don't know what rights NFTs are specifically trading." Kano also said that because digital ownership is not recognized under civil law, "even if you purchase an NFT, you cannot obtain ownership of the data," and that what is actually traded is only the "feeling of ownership."
Hiroyuki went on to point out that there are many people who want to make money from speculation on Web 3.0 as a whole, and many businesses that use it to commit fraud, and that there may not be many people motivated to build Web 3.0 socially. Kano agreed with this, but replied that history shows that in the early days of innovation, scammers emerge.
In this session, Kano said that stablecoins have a future in terms of being used for small-scale payments. He went on to say that the good thing about cryptocurrencies is that transactions can be made from as little as 1 yen, and expressed hope that the future is bright, with services starting to be launched that allow users to receive rewards for measuring engine displacement on a bicycle or finding manholes.
▶ From the left: bitFlyer's Kano and Hiroyuki
The next session, "The latest trends in Web3: Learn about global trends in Japan," featured Sota Watanabe, founder of Aster Network, a public chain from Japan, Takeshi Chino, CEO of Binance Japan, and Daisuke Iwase, CEO of Animoca Brands Inc. The moderator was Yusuke Shitara, editor-in-chief of the Web3 media "Atarashii Keizai." This session was also filled with enthusiasm, with standing room only.
Watanabe commented that "good talent will gather in countries that create a good environment for advancing Web3.0." He warned that countries that launch Web3.0 businesses but then get stabbed in the back will lose talent. He also said, "In the next three or four years, it will become unclear which chain is being used behind the scenes of the service, and only the chains with good apps will remain. I want to create a system where Aster is actually being used behind the scenes."
Animoca Brands' Iwase pointed out that "Big names from Web 2.0 who know all about mass adoption are entering the Web 3.0 field." He also said, "The key to mass adoption is not P2E (Play to Earn), but creating games that are truly enjoyable," and "The three pillars of Web 3.0 mass adoption will be games, tickets, and finance."
And Binance Japan's Chino said, "Binance plans to issue stable coins in Japan," attracting a lot of attention. In addition, Binance CEO CZ also appeared in a video message, saying, "Japan has delicious food, but the Web 3.0 environment is also good. I'm looking forward to the future of Japan. I hope you will pay attention to our activities in Japan," and once again revealed that the company plans to launch its services in the Japanese market from August this year.
In addition, Binance also said that it plans to launch a major project in Japan.
▶︎Binance's CZ sends a video message
The second day of the Japan stage began with a guest speech by Minister of Economy, Trade and Industry Yasutoshi Nishimura. Minister Nishimura said that it is important to overcome the low birth rate and aging population problem that is hindering domestic growth through innovative technologies that utilize Web 3.0 and AI.
He also mentioned that the driving force behind innovation is the “challenging attitude of the younger generation and startups,” and said that blockchain in particular is “one of the technologies that will bring innovation to society.” He expressed particular hope for the synergistic effects of AI and blockchain, positioning it as “having the potential to make social change a reality.”
Minister Nishimura used the word “innovation” frequently in the second half of his speech, emphasizing loudly that “innovation is necessary to overcome the challenges facing humanity.”
▶︎Minister Nishimura takes the stage
The Japan stage was filled with excitement from the morning due to Minister Nishimura’s speech, and then held a session titled “The Global Influence of Japan’s Cryptocurrency Regulation.” The speakers were Mr. Kano, CEO of bitFlyer and Representative Director of JBA (Japan Blockchain Association), Mr. Genki Oda, Founder and CEO of BITPoint Japan and Chairman of JVCEA (Japan Cryptocurrency Exchange Association), and Mr. Ryosuke Ushida, Chief Fintech Officer of the Financial Services Agency.
The moderator for this session was Mr. Noriyuki Hirosue, CEO of bitbank and Chairman of JCBA (Japan Cryptocurrency Business Association). As the heads of the representative organizations related to cryptocurrencies in Japan, JBA, JVCEA, and JCBA, gathered, the venue was once again filled with standing room only.
The session began with Mr. Kano taking the lead in summarizing overseas regulatory trends in relation to the FTX incident that occurred last year. In the process, Mr. Ushida, who is in charge of developing regulations, once again evaluated the current Japanese market environment, focusing on customer protection.
Mr. Oda also mentioned that the number of cryptocurrency stocks being handled by domestic cryptocurrency exchanges is increasing, and revealed that as of May of this year, JVCEA had already completed its review of 91 types of cryptocurrency.
He also stated that he plans to focus on increasing the leverage ratio in the future and increase the liquidity of the domestic cryptocurrency market. Specifically, he said that he would like to first increase the liquidity of domestic Bitcoin transactions by about 15%.
Mr. Kano also agreed with the change in the leverage ratio, and emphasized, "Japan's regulations have advanced and the business environment has become easier. Japan has the potential to lead the world."
Based on this exchange, Mr. Hirosue said, "Large companies are becoming more interested. If the environment becomes easier to enter, the market will become even more active," and concluded by saying, "Private power will definitely be necessary in the future."
▶︎From the left: Mr. Kano of bitFlyer, Mr. Oda of BITPoint Japan, Mr. Ushida of the Financial Services Agency, Mr. Hirosue of bitbank
The morning session on the second day was concluded by four people: Mr. Watanabe of Aster Network, Mr. Joichi Ito, co-founder of Digital Garage, Mr. Masaaki Taira, member of the House of Representatives and chairman of the Liberal Democratic Party's Web3 Project Team, and Mr. Takahito Kakami, CEO of CoinPost. The talk was titled "Japan's National Web3 Strategy: Thorough Discussion on the Path to Be Taken in the Next Five Years," and the speakers had a very in-depth discussion.
In particular, the topic of "How to Increase Profits and Revenues with Web3" gave a glimpse of each of their thoughts.
First, Watanabe emphasized the importance of thinking in 10-year increments, commenting that it is hard to imagine that Google was thinking about profits from the beginning. Ito also cited the time when email first began to be used, saying, "There was no talk of increasing profits through email, and we need to do it in the long term," and stated that we should think about what can be solved by Web3.0.
Taira said that we should maximize the value of existing analog industries such as tourism, and expressed the view that Japan's IP and culture can be effectively utilized.
Finally, they spoke about "industry prospects five years from now."
Watanabe said, "It would be impactful if a project originating in Japan could enter the top 10 in terms of market capitalization within five years. To achieve this, it is important for large companies to enter the market." Ito also mentioned that regulatory authorities and the public and private sectors are interested in Web 3.0 and are in the process of accumulating knowledge, and noted that "it is important not to be overly negative."
Furthermore, Taira said that stable power supply and cryptocurrency taxation will be political issues, and that in order to change this, it will be important that momentum does not change with political positions or election trends.
▶︎From left: Watanabe of Aster Network, Ito of Digital Garage, Taira of the LDP, Kagami of CoinPost
One of the most exciting sessions in the afternoon was "The Japanese Yen Goes Digital: What Does the Future Look Like Beyond That?", which featured well-known economist Yusuke Narita, SBI Financial and Economic Research Institute Research Director Yutaka Soejima, and Toyota Financial Services CBDC Team member Naohiko Ueno.
In this session, attention was focused on the point that Narita raised at the beginning: "When society becomes digital, will we not need money in the first place?"
Narita stated his opinion that "Everything can be tracked, so there is no need for price exchanges. There is a vague limit to what cannot be done, and if there is an entity that deviates from that limit, money will no longer be necessary." On the other hand, he showed some understanding that if digitalized currency is released, it would be good as a redistribution mechanism.
Soejima mentioned that "money is an important tool that allows for instant payment and is in someone's hands." He then argued that when CBDC is circulated, issues such as "what kind of information can be collected?" and "is it acceptable for private companies to become oracles?" must be resolved.
In addition, when the digital yen is circulated, on the topic of "can it coexist with stablecoins?" Ueno expressed the view that "coexistence is possible." On the other hand, he also stated his opinion that stablecoins may be used only to a limited extent for interbank settlements.
Soejima stated that the coexistence of CBDC and stablecoins would lead to "healthy competition," but that sticking to these could hinder future development, and that other payment methods must be considered.
▶︎From the left: Ueno from Toyota Financial Services, Soejima from SBI Financial and Economic Research Institute, Narita, and Kagami from CoinPost
This year's WebX took place in a large part of the Tokyo International Forum. Every area was filled with many participants, and it was clear that they were all deepening their connections.
When we spoke to several companies and projects exhibiting at their booths, we heard them say, "Unlike previous events, I think there were a lot of general public visitors." In fact, there were many participants who enjoyed the event with their children and NFT art, so it can be said that this event contributed greatly to the mass adoption of Web 3.0.
In addition, as mentioned above, there were many standing-room-only sessions at each session, showing a high level of interest in Web 3.0. This was also a valuable scene that shows that Web 3.0 is becoming more widespread in the world.
Considering this situation, it seems that the impact that the WebX event had both inside and outside the industry, and the legacy it left behind, will be something that will lead to the future development of Web 3.0 in Japan.
Image: Iolite
Interview Iolite FACE vol.10 David Schwartz, Hirata Roi PHOTO & INTERVIEW "Yukos" Special feature "Trends in the cryptocurrency industry in Japan", "Trump vs. Harris: What will happen to the cryptocurrency industry?", "Was the reputation economy a prophecy?" Interview: Simon Gerovich, Metaplanet Co., Ltd., Kim Dong-Gyu, CALIVERSE Series Tech and Future Sasaki Toshinao...etc.
