The recently convened Bhutan Innovation Forum (BIF) highlighted the transformative potential of blockchain technology and decentralized artificial intelligence (AI) in fostering secure, transparent, and sustainable digital economies.
Blockchain technology, a foundation for numerous digital innovations, is a decentralized and distributed ledger system that enables secure recording, verification, and storage of data across a network of computers, eliminating the necessity for a central authority. Bhutan is leading initiatives in implementing blockchain technology for national digital identity (NDI), and utilizing green energy for cryptocurrency mining stand as exemplary models.
Key speakers and industry experts discussed how these innovations can revolutionize various sectors, enhancing trust and efficiency while promoting environmental sustainability. The forum engaged policymakers, entrepreneurs, and technologists in exploring collaborative efforts to integrate these cutting-edge technologies into Bhutan’s economic framework, ultimately positioning the nation as a leader in the digital landscape.
Blockchain & AI Expert, Marloes Pomp said that the main goal was to build a digital economy, trusted economy, where digital identities, digital services and AI will play a huge part.
The speaker emphasized the importance of avoiding the pitfalls associated with big tech dominance in social media by promoting community ownership and control over digital infrastructures. They advocate for developing alternative solutions to create decentralized, stable, transparent, and secure systems, especially for critical infrastructures. The discussion highlighted the potential of blockchain and AI in achieving these goals, pointing out that the community is well-equipped to build these infrastructures with a mindset geared towards decentralization.
Moreover, the speaker acknowledged the need for some level of centralization to effectively implement decentralized models, particularly as seen in examples like Estonia’s digital identity and payment systems. They stress the significance of a collaborative approach to navigate the competitive landscape dominated by large tech companies, suggesting that community-focused initiatives can lead to more autonomous and safer digital environments.
CEO & Founder at Binifico, Niko Jlich said that life is energy and everything that happens in the digital world is also about energy. The CEO said that Bhutan has this unique position where the economy has one thing in surplus, and that is energy.
As for Bitcoin, Niko said that it is very important for Bhutan in order to retain its people to build their life here.
Dev Raj Dungana from the Bhutan NDI shared that the NDI has been at the forefront of digital transformation in Bhutan. “Technology is based on blockchain, and it’s a decentralized model. NDI utilizes Polygon, a sidechain of Ethereum, to harness the opportunities and accessibility it offers,” he said. He added that this technology has significantly enhanced the ability to reach individuals, especially those in remote areas of the country. “One key focus is to provide banking services to unbanked populations, ensuring that everyone has access to essential financial resources.”
Blockchain, according to Dev, is meant to be secure by design. “It is immutable, tamper proof, and it has been at the forefront of enabling secure digital identity exchange among individual users and service providers.”
Aya Miyaguchi from the Ethereum Foundation said that her call to action for Bhutan would be to start with a good strategy, because it does make so much sense to talk about these technologies in a separate manner. “One has to figure out what are crucial elements, utilities, wants, and how are they connected, and how will the infrastructure look like? What kind of confidence models do we need? How do we make it accordingly, certain values, human centric AI?”
She said that blockchain is not the technology for anarchist anymore and the government can actually benefit from it by empowering their citizens by giving the right amount of transparency.
However, she pointed out that there are lot of information out there, misleading, confusing, for example, in the in the space of blockchain. “Not all blockchains are equal and it’s really hard to understand, like not easy to understand what is really best for each technology. For that, I think it’s very important to strengthen the talents of local people,” she added.
Dev Raj Dungana said that promoting sustainability is a fundamental principle of GMC, where a unique opportunity to leverage new technologies like blockchain and AI to drive innovation in this area presents itself. “GMC can facilitate sustainable innovation for companies, organizations, developers, and startups by offering incentives such as tax benefits or green carbon bonds to those that implement these technologies sustainably. This approach can encourage others to follow suit,” he added.
Concluding their discussion, the experts emphasized the significance of strategic governance, environmental sustainability, equitable access, and collaborative partnerships between technology experts and policymakers. By adopting these principles, panelists asserted that Bhutan and similar countries can fully leverage the potential of blockchain and AI to improve societal well-being and strengthen economic resilience.
By Sangay Rabten, Thimphu
