Japanese village turns to NFTs to help elderly adults

Affiliated with the Yuri Group, Yamkoshi village's experimental Naft strategy has attracted the attention of other nations facing declining birth rates.

Yamakoshi, an isolated Japanese village nestled in the Niigata Mountains, has attracted 1,700 "digital citizens" through the sale of non-fungible tokens (NFTs) in an initiative aimed at supporting and sustaining its aging population.

The Neo-Yamakoshi Village Project, led by local residents, manages the Nishikigoi NFT collection, named after a dynamic species of koi carp.

According to a new report from Japanese research and consulting firm Yuri Group, the project has raised more than $423,000 through Nishikigoi NFT sales since launching in 2021.

Leads to community initiatives such as organizing sports days for local school children.

Population of Yamkoshi village. Source: Yuri Group

Nishikigoi tokens are free for physically located residents, while the digital community must purchase them. Floor is worth 0.0318 ether. ETH Tickers below $3,368 As of June 26 as per NFT Marketplace Magic Addon.

NFT technology alone does not present an immediate solution to Japan's record-low birth rate, but it is a unique and experimental approach to raising funds for an aging population in isolated rural communities.

In April, the private sector group Population Strategy Council reported that 40% of Japan's 1,729 municipalities are at risk of disappearing due to low birth rates.

Prime Minister Fumio Kishida's administration sees Web 3 as a key element in achieving "Society 5.0," which aims to create a more sustainable and advanced society by integrating.

The Neo-Yamakoshi Village Project was awarded 10 million yen (about $62,500) by the ruling Liberal Democratic Party to test and implement Web3 tools.

However, the project has faced some hurdles, such as explaining the technology and its benefits to older adults.

Related: Mark Cuban Wallet Sees Dumping NFTs After 2 Years of Inactivity

Also, foreign digital citizens have also faced language barriers.

Meanwhile, global NFT trading volumes have seen a sharp decline in recent months.

According to CryptoSlam data, global NFT sales volume is on pace to close below 45% in the second quarter of 2024, while June is expected to be the worst-performing month since 2023.

NFT market capitalization, largely dominated by consolidation and derivatives, fell 31.5% in the three months to June 26, according to data from NFTGo.

Despite the recent decline in NFT trading activities, Yuri Group told Cointelegraph that there is room for both practical NFT and profile collection in Japan.

"After all, this is Japan - the home of anime and manga, and a country with a huge physical collection culture," Yuri Group researcher Will Fee told The Telegraph.