Sierra Leone is adopting Bhutan's digital identity system — a rare case of a small state exporting its own technological infrastructure abroad. The deal caught the attention of former head of the world's largest crypto exchange Binance, Changpeng Zhao (CZ). Let's break down what happened and why CZ is involved.
What happened
The Ministry of Communication, Technology and Innovation of Sierra Leone, Bhutan National Digital Identity Limited, and the SIGN Foundation signed a memorandum of understanding. The partners agreed to jointly create a national digital identity platform for the African country. The development will be based on open-source code and verifiable credentials of the W3C standard.
| Project Participant | Role in Partnership |
| Bhutan NDI | Provision of the core open-source framework |
| SIGN Foundation | Technical implementation and architecture |
| MoCTI (Sierra Leone) | Strategic guidance and overall coordination |
A special working group is being created to oversee the implementation of the initiative. Experts will prepare a phased roadmap. The initiative was publicly noted by Changpeng Zhao. The businessman has no formal connection to Sierra Leone or Bhutan. Likely, it was the involvement of the Bhutanese side that attracted his attention.
Why CZ is watching Bhutan
Zhao has no direct link to Sierra Leone, as the country is not on the list of nations where he acts as an advisor. However, he has accumulated enough contacts with Bhutan. For example, in December 2024, he met with the King of Bhutan, whose country holds one of the largest bitcoin reserves. Later, CZ approved the decision of the Bhutanese project Gelephu Mindfulness City to create the first national reserve consisting of several crypto assets: BTC, ETH, and BNB.
Clearly, this is where the key interest lies. Bhutan NDI is a wholly owned subsidiary of the sovereign fund Druk Holding & Investments. This organization manages the kingdom's crypto initiatives. It can be assumed that the story is attractive to Zhao not because of the digital identity itself, but because of the export of the Bhutanese model.
An additional incentive is the presence of BNB in Bhutan's reserves, as this token is closely tied to the entrepreneur's native exchange, Binance.
Recall that Zhao stepped down as CEO of Binance in November 2023 after an agreement with the U.S. Department of Justice. Later, in October 2025, he received a presidential pardon from Donald Trump. According to his own words, CZ currently provides consultations to various states for free.
What Sierra Leone is adopting
The Bhutanese NDI system is not an ordinary state database, but a decentralized ecosystem based on the principles of self-sovereign identity. The user stores their verifiable data in a biometric-secured mobile wallet. The citizen decides what information to share. Personal data is not collected on a central server. As a result, a person can confirm only the required fact, such as being of legal age, without revealing their full date of birth.
An important factor is the high maturity of the platform. Originally built on Hyperledger Indy and later migrated to Polygon, by 2026 the system is transitioning to Ethereum to maximize security. For Sierra Leone, this is a ready-made technological solution with international recognition.
The Bhutanese NDI is already included in the Global Acceptance Network, allowing local digital IDs to be used legally abroad. Finally, a separate emphasis in the partnership is placed on transferring competencies so that Sierra Leone's national institutions can independently maintain the platform in the future.
My professional opinion: This case is a serious signal for the market. Bhutan is turning into a laboratory for blockchain solutions for developing countries. The export of digital identity not only strengthens its sovereignty but also creates a precedent where small states can become technology donors. And CZ's interest confirms that this model is worth watching — perhaps soon we will see BNB and other assets become not just speculative tools, but part of the infrastructure of entire countries.