日本語 
Japan is taking another step toward using digital technology to address one of its most persistent challenges: the decline of regional populations. Kayac, a Japan-based technology and creative company, has been selected to support the Ministry of Internal Affairs and Communications (MIC) in a model project for the country’s new Furusato Resident Registration System. The initiative could create new opportunities for technology companies, local businesses and municipalities as Japan looks to build stronger connections between people and regions outside their usual place of residence.
The Furusato Resident Registration System is designed to create what Japan calls “related populations” — people who may not live in a particular region but maintain an ongoing relationship with it. Under the planned system, people can register as “furusato residents” of another area and use a digital platform to discover local information, volunteer opportunities, community events and other activities.
Kayac will provide operational support and conduct application demonstrations for the model project, working with seven prefectures and 21 municipalities. The Japanese government plans to launch the system nationwide during fiscal 2026, with an application release planned toward the end of the fiscal year.
Digital Technology Meets Regional Revitalization
The significance of the project goes beyond population policy. It demonstrates how digital transformation in Japan is increasingly moving beyond traditional corporate IT and into regional development.
Kayac brings experience from its existing platforms, including Smout, a service connecting people interested in regional living with local communities, and Machino Coin, a community-focused digital currency application. As of August 2026, Smout had approximately 99,000 registered users and more than 1,200 registered regions, while Machino Coin had been introduced across 31 regions.
These platforms provide an example of how technology can turn an otherwise difficult challenge — maintaining connections with shrinking communities — into a more measurable digital process.
For municipalities, this could mean better ways to understand who is interested in their region, what activities attract people and whether online engagement eventually results in physical participation. Smout, for example, provides tools for publishing local projects, communicating directly with potential participants and analyzing user interest through dashboards.
What It Means for Japan’s Technology Industry
The project could create a broader market for GovTech, civic technology and regional DX solutions in Japan.
Municipalities increasingly need digital platforms that can connect residents, visitors, businesses and volunteers. That demand could benefit software developers, cloud providers, mobile application companies, data analytics firms and digital service integrators.
The Furusato Resident Registration System may also encourage technology companies to develop products specifically designed around regional challenges. These could include digital identity tools, community platforms, location-based services, AI-powered recommendation systems and analytics platforms that help municipalities understand engagement patterns.
The opportunity is particularly important because many Japanese municipalities operate with limited resources. Digital services that are easy to deploy and maintain could help smaller communities adopt technology without having to build complex systems internally.
New Opportunities for Local Businesses
The effects will not be limited to government agencies and technology vendors. Local businesses could also benefit if the system successfully converts digital engagement into physical activity.
Machino Coin is an example of how this works. People can get community points by doing things in their area. Then use those points at local shops. This idea is meant to get people to visit stores and help locals and visitors get to know each other better.
If we did something like this for people who live in the furusato area it could bring in customers for restaurants, stores, tour operators, hotels and other local businesses. Someone who joins the community online might eventually come visit go to an event shop at a store or even think about moving to the area.
This could be a change for businesses from just trying to get tourists to come visit to actually building a community online that lasts.
There are challenges that will decide if this works in the long run.
The technology is not enough on its own to make it work. Japan needs to make sure that the system is really useful to people and, to the towns and that it is easy to use.
We also need to think about keeping peoples information safe protecting against cyber attacks making sure all the different town systems work together and making sure the digital services are quality. If each town makes its separate platform it could be frustrating for businesses and people to use.
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Success will ultimately depend on whether digital engagement can translate into real-world participation.
A Broader Signal for Japan’s Digital Future Kayac’s involvement highlights a broader trend in Japan:
Technology is increasingly being viewed not only as a tool for business efficiency but also as infrastructure for solving social and regional challenges. If the Furusato Resident Registration System succeeds, it could become a model for how Japan’s technology industry works with government and local businesses to tackle demographic pressures. For technology companies, that means the next major opportunities in Japan may not come exclusively from enterprise software or artificial intelligence. They could also emerge from the digital infrastructure being built to reconnect people with the communities that need them most.
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