The initial offers of currencies (ICO) have had quite a bad reputation in recent months. This is not entirely surprising since this method of raising money raises many questions and provides very few answers. In Japan, it seems that people have a more open mind when it comes to ICO. In fact, a local government plans to use this business model as a way to preserve a village and provide an economic boost in the process.
One of the main problems that people have with the initial offers of currencies is at what point the tokens happen to have some value. In the world of cryptocurrencies, most tokens are issued for projects that do not exist other than on paper. If there is no tangible or useful technology or product to support the value of these tokens, they are nothing more than empty promises. That does not make the business model itself less viable, but it also shows that something will have to change sooner rather than later.
In that sense, the Japanese people of Nishiawakura hope to give the ICOs a slightly better reputation. Located in the Prefecture of Okayama, this village has been looking for ways to revitalize and recently began to look for the possibility of offering its own currency in the form of a token, that is, making an ICO finance revitalization projects that revert for the benefit of the population. It is an interesting approach since you could also request the support of the national government or even seek private investment. This transparent and public approach can be more successful in the long term, assuming there is interest in this initiative.
At the moment, the local government is exploring the possibility of having an ICO. It is very different from what most people associated with cryptocurrencies would associate with a classic ICO. Investing in important updates is one of the main priorities of this village, but getting the support required to do so is difficult. A municipal ICO in collaboration with the private company will yield some interesting results; that is almost guaranteed. In a way, the future of this people can be determined by the way in which this ICO, if it is produced, is received by the public.
Nor should the potential impact of private enterprise on this initiative be overlooked. There are many partners willing to help the village in this regard, although it remains to be seen what their real roles will be in the end. A blockchain supplier has already been found in the company of Chaintope Co Ltd based in Malaysia. The hosting of an ICO requires a blockchain infrastructure of some kind, and it does not appear that the Nishiawakura government is interested in using Ethereum or WAVES. That is an interesting decision, although controversial within the world of cryptocurrencies.
What is remarkable is how the blockchain created by Chaintope Co Ltd is based on the Bitcoin blockchain. The chain uses a very similar model and can serve many different purposes. One possible weakness is that it depends entirely on Amazon’s AWS for data storage, which means a fairly centralized approach. At the same time, these new chains can be connected to the chain of Bitcoin blocks to signal in real time. It is an interesting concept, although a private and centralized chain is always a controversial issue among blockchain enthusiasts.
Although it remains to be seen if this initiative will come to fruition, its initial focus is quite interesting. More specifically, Japan seems very interested in the concept of ICO in general, although the position of the governments is quite varied on the ICO’s, without a clear regulatory framework for the initial offers of currencies, there is an interesting field to explore. both in the public and private sectors.
We can only hope that a clear and common regulatory framework will be adopted at the global level so that various initiatives, business, public and even social, may come to light in the form of an ICO, and in this way, the initial offers of currency may emerge from the ostracism of the eternal suspicion.