Japan’s local governments are using NFTs for regional revival & tourism

Local Japanese governments are increasingly working with companies to leverage non-fungal tokens (NFTs) for regional revitalization and attract international visitors. This trend, which is accelerating rapidly through 2025, marks a major pivot for incorporating Web3 technology into the country’s main economic strategy.

Today alone saw major developments: Toda Corporation, JTB and Fujitsu launched a pilot program in Echizen City, Fukui Prefecture, using NFTs to enhance digital transformation (DX) in tourism and boost inbound traffic. Separately, Shizuoka-based SFG Marketing announced its entry into the NFT business following successful early trials.

This increase is underpinned by the Ishiba administration’s commitment to ‘regional revitalization 2.0’ and coincides with a crucial shift in inbound tourism, where foreign visitors are increasingly exploring destinations beyond major metropolitan areas.

The Rise of “Government NFTs”: From Digital Residency to Tourist Passes

NFTs issued by local governments – often called “government NFTs” – have evolved beyond simple digital collectibles. They now serve as powerful tools for achieving a trifecta of goals: securing local financing, fostering “relationship populations,” and urban advancement.

As of August 2025, more than 17 local governments in Japan have issued NFTs. These projects are very varied. Fukaya City offered the “Fukkachan NFT” as a Furusato Nozei Return Gift. Kumakogen Town collaborated with a manga artist for a ‘digital resident NFT’. These NFTs function as loyalty or digital multi-pass systems. In particular, they grant holder holders tangible benefits, such as local discounts or priority access. This creates a clear experience value.

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Kumakogen Town, with a fiscal capacity index of 0.21, is facing calls of impending financial collapse. Photo: Photo-AC

Crucially, the expansion gained significant momentum after the Ministry of Internal Affairs and Communications designated local NFT projects as eligible for the “Local Economy and Living Environment Creation Grant” this fiscal year.

NFTS as a catalyst for inbound tourism to regional Japan

The adoption of NFTs is strategically aligned with Japan’s national tourism goals. In recent years, inbound travelers have shown a clear preference for destinations outside major cities, expanding their focus to regional Japan. According to Japan’s tourism bureau data, consumption by foreign visitors reached a record high of $53 billion (JPY 8 trillion) in 2024.

NFTs serve as a powerful tool to accelerate this trend of tourism dispersion:

1. Digital incentive: International NFT enthusiasts are interested. Acquiring unique digital certificates or exclusive local benefits creates a powerful travel incentive. These benefits are only available by visiting specific Japanese regions.
2. Promotion of local circulation: The pilot of Echizen City shows one path. By linking NFTs to local transportation, Tourism DX. This encourages tourists to explore regions more deeply. JAL and JTB are also conducting trials. They combine “Oshikatsu” (fan activities) with NFTs to generate new visitor flows in Kansai.
3. Global Showcase: The Cabinet’s “Cool Japan Showcase” at the Osaka-Kansai Expo 2025 in April featured 26 regions with regional tourism through NFTs and immersive technologies. This highlights a clear government-led effort to project regional assets onto the global Web3 stage.

NFTs are transforming the experience for foreign visitors, shifting the focus from simple “spending” in big cities to “experiential consumption” and establishing “relationships” with rural Japan.

The legacy of Ishiba’s policies: Web3 as the cornerstone of revitalization

The accelerated proliferation of government NFTs in 2025 is widely seen as the culmination of the Ishiba administration’s dual push for a Web3 national strategy and regional revitalization.

Speaking at Webx 2025 on August 25, Prime Minister Shigeru Ishiba reaffirmed the government’s position on promoting Web3 as a national strategy. Additionally, he highlighted Web3’s potential for regional revitalization. For example, he mentioned successful web3-driven initiatives in AMA Town on the Oki Islands as an example.

As a former minister of regional revitalization, Ishiba championed ‘regional revitalization 2.0’, positioning digital transformation (DX) as indispensable for regional renewal.

At WebX, the Prime Minister stated that the “2020s will be recorded as a great turning point in history”, comparing it to the Industrial Revolution, and the government pledged to actively use new technology with the spirit of “Let the one who will act be the first to do it”.

The Ishiba administration ends. However, local government NFT deployments are expanding rapidly. This happened just two months after his keynote. It shows that his ultimate policy commitment holds. The goal is to anchor Web3 in the regions. This NFT collaboration expands its role. It’s not just a trend. It is a new digital infrastructure poised to fundamentally shift Japan’s economic structure.

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