How states are adapting to digital technology

1) Why the state needs digital restructuring

Economy speed. Real-time payments, platform markets and AI services are ahead of traditional government cycles.

Risk globality. Cyberattacks, data outflows, crypto transactions and cross-border platforms do not fit into the territorial framework.

Citizens' expectations. Services "as in the best applications": fast, transparent, 24/7, mobile first.

Decision provability. Policy and regulation are moving into the language of data, models and metrics.

2) Digital Public Infrastructure (DPI)

Three DPI whales:

1. Digital identity (eID/mobile ID, verified credentials).

2. Digital payments (fast payments, open APIs, financial sector compatibility).

3. Register/data bus (registers of population, business, objects; interagency exchange; access logging).

Principles: open standards, default security, data minimization, "privacy by design," compatibility of private and state systems.

3) Regulation: from paper to smart (RegTech/SupTech)

RegTech for business: machine-readable requirements, automated reporting, API regulation, compliance-as-code.

SupTech for regulators: streaming data, risk descripts, anomaly alerts, random checks "on signal."

Sandboxes and pilots: quick experiments with new models (fintech, telemedicine, iGaming, Web3).

Continuous supervision: telemetry instead of rare inspections; accents - payments, responsible marketing, consumer protection.

💡 For industries like iGaming, this means online KPIs, RTP/payout monitoring, on-chain screening and machine multi-account detection.

4) Data policy and privacy

Unified data taxonomy: what data is personal, commercial, sensitive; who is the owner and operator.

Exchange rules: access agreements by role, citizen consent protocols, audit trail.

Default trust: encryption, aliasing, differential privacy, and ZK validations where possible.

5) Cybersecurity as a foundation

State threat model: critical infrastructure (energy, transport, finance, DPI), suppliers and chains.

Zero Trust architectures: strong authentication, segmentation, activity log, continuous monitoring.

Exercise and bugbounty: response plan, back-up channels, incident drills, coordination with the private sector.

6) Artificial intelligence in public administration

Application scenarios: anti-fraud, employment and health forecast, traffic and emergency management.

Ethics and explainability: model registers, bias audits, human-in-the-loop, citizen appeals.

Data for AI: displays of high-quality datasets, catalogs of metrics and model passports, versions and reproducibility.

7) Taxation and the digital economy

Online cash registers and real-time reporting: reducing shadow turnover.

Platforms and marketplaces: rules for commissions, returns, consumer protection and advertising transparency.

New assets and tokens: valuation, accounting, conversion taxes; control of the source of funds.

8) Digital Transformation of Services (GovTech)

Superapplications and portals: single sign-on, personalization, real-time claim statuses.

Life events: "born," "entered," "opened a business," "moved" - packages of services "with one click."

Accessibility and inclusion: offline points, simple interfaces, multilingualism, assistive technologies.

9) Fintech, Web3 and iGaming: How states set up rules

Double circuit for crypto and Web3: virtual asset provider licenses + industry permissions (games, payments, investments).

KYC/AML and sources of funds: risk-based approach, online analytics, attribute exchange according to the "Travel Rule."

Responsible play and marketing: age filters, limits, ombudsman/ADR, telemetry payments.

Taxes and reporting: uniform data formats, the ability to automatically fill out declarations.

10) Change Management: People, Culture, Partnerships

New roles: public services product manager, data architect, ML operations engineer, SupTech analyst.

Training and retraining: academies of state figures, modules on cybersecurity and AI ethics for everyone.

PPP models: the state sets standards and logic, the private sector develops and scales.

11) Digital Transformation Success Metrics

Availability of services: share of services "completely online," time to result, NPS of citizens.

Savings and effect: reduced transaction costs, increased tax collections without raising rates.

Security: number of incidents and elimination time, bugbounty coverage, share of systems with Zero Trust.

Regulatory: the share of enterprises with API reporting, the time of release of regulatory updates "in code."

12) Road maps to 2030

For central organs

1. Inventory of data and services, integration and risk map.

2. Starting DPI 1. 0: eID, fast payments, data bus, registers with audit log.

3. RegTech/SupTech core: machine-readable rules, reporting APIs, risk boards.

4. Cyber Foundation: Zero Trust, SOC, exercises, backup circuits.

5. Ethics and AI: model register, XAI principles, appeals.

6. Sandboxes and standards: accelerated pilots, open data schemes, business compatibility.

For industry regulators (including gambling and finance)

1. Continuous supervision: telemetry flows (payments, RTP/payments, marketing).

2. Public KPIs and risk thresholds, automatic alerts, random checks "on signal."

3. Vendor-circuit: qualification of KYC/AML/online analytics providers and payment gateways.

4. Consumer protection: Ombudsman, response times, complaint statistics, transparent offers.

For regions and municipalities

1. Uniform standards with a center, local "life events."

2. Digital SME services: registration, permits, subsidies - "in one day."

3. Data-for-solutions: transport, ecology, social services - analytics in daily management.

13) Checklists (brief)

State agency

eID and single sign-on;
API and registry directory;
policy-as-code for key rules;
SOC/Zero Trust/exercise;
a register of AI models and XAI;
a sandbox for innovation;
NPS metrics/time-to-service.

Regulator

SupTech risk panel;
streaming reporting;
Ombudsman/ADR;
data standards and access protocols;
independent audits and bugbounts.

Business

RegTech integration and API reporting;
KYC/AML as code + logs;
cyber minimum: MFA, segmentation, access log;
privacy by design;
participation in sandboxes and pilots.

14) Frequent mistakes and how to avoid them

IT instead of politics. Digitalization without revision of procedures = expensive imitation. Solution: redesign processes.

Closed standards. Vendor-lock-in interferes with integrations. Solution: Open data schemas and portability.

Collecting "all" data. Risk of leaks and resistance. Solution: Minimization and processing goals.

IE - "black box." Distrust and legal risks. Solution: XAI, model register, appeals.

Safety "later." Technical debt is multiplying. Solution: security-by-design and protection budget is equal to feature budget.

15) The bottom line

States that build digital infrastructure (ID payments-data), translate regulation into a machine-readable format, implement SupTech supervision and "default security" receive three advantages:

1. fast and convenient services for citizens and businesses, 2. managed risks (cyber, finance, Web3, iGaming), 3. sustainable, measurable economic impact.

By 2030, those who turn politics into code, data into solutions, and security and privacy into the foundation of architecture will benefit.