A village in Japan named Nishiawakura Village has announced that it will launch an initial coin offering(ICO) in order to secure funds for making the village sustainable. This will be the first time in Japan for a municipality to use a token sale to raise funds.
A small village creating the roadmap for others
Nishiawakura Village is in Okayama Prefecture, that is located in the southern part of Japan’s Honshu island. The prefecture is largely known for its rural landscapes, feudal castles and art museums. With 95% of the area covered in forest, the village has a population of approximately 1,500.
The village administration has been known for taking steps which an unusual for municipalities. In the early 2000s, the village refused to merge with Mimasaka City when municipalities nationwide consolidated, wanting to remain economically independent and now it describes itself as “Japan’s first decision to issue a regional ICO by a local government.”
According to the official announcement of the village quoting
“In order to promote the creation of a sustainable region in the future, as a means for small local governments to secure new financing resources and to build up regions through upfront investment, tokens issuance, and the creation of virtual currencies, we will introduce fundraising through an ICO for the first time as a municipality in Japan.”
The funds procured will carry out business development, etc. in collaboration with Nishiawakura Village, and will develop a sustainable community.
Creation of Nishiawakura coin (NAC)
The village’s tokens will be called Nishiawakura Coin (NAC) and will be issued by the newly formed Nishiawakura Village Token Economy Association (NVTEA). The NAC coins will carry voting rights which will give the citizens and holders participating rights in decision making relating to local ventures, the village explained.
“We plan to advance according to the revised fund settlement law…in line with the self-regulation rules on the management and finance by the Japan Virtual Currency Exchange Industry Association,”
according to the announcement. This industry association was established in April and consists of 16 government-approved crypto exchanges. The revised fund settlement law went into effect in Japan last year, legalizing crypto as a means of payment.
Will this ICO by the municipality of Nishiawakura Village be a success? Will this lay the roadmap for other municipalities as well? Do let us know your views on the same.