Government banning insecure open standards and then not providing a secure open standard is atrocious. If I must have an official authorizing thing to prove I'm who I say I am, make it as small as possible.
If you mandated that they have to support Yubikey or whatever on open platforms I'd take that as a decent alternative. But just "no you must use a device controlled by somebody else" is not acceptable.
YAS!! The option is to provision an key from a server tied to a national id and downloadable only to specific device. BUT NO!!! Just ban things instead of doing the right thing!