USDBhutan Anchors Its National Digital ID System on Ethereum, Serving 800,000 Citizens
The Himalayan kingdom makes history as the first nation to secure a nationwide identity framework on a public blockchain
TL;DR:
- Bhutan has migrated its national digital identity system to Ethereum, marking the world’s first government-backed identity network on the blockchain.
- Around 800,000 residents will transition to the Ethereum-based system by Q1 2026, following earlier deployments on Hyperledger Indy and Polygon.
- The move highlights Bhutan’s growing crypto adoption—its sovereign holdings exceed 11,000 BTC—and underscores the country’s commitment to self-sovereign digital infrastructure.
Bhutan has officially completed the migration of its National Digital Identity (NDI) system to the Ethereum blockchain, establishing the world’s first nationwide digital identity program anchored on a public network. The transition, confirmed by Bhutan’s GovTech agency and first reported on October 14, 2025, represents the third major iteration of the country’s identity infrastructure after earlier versions on Hyperledger Indy and Polygon. The system now serves roughly 800,000 citizens, each able to store and verify personal credentials through encrypted digital wallets connected to Ethereum smart contracts.
The NDI framework is built on the concept of self-sovereign identity, a model that allows individuals to control and selectively disclose verified personal data without relying on centralized government databases. Under this design, citizens can prove attributes such as age, education, or residence through verifiable credentials while preserving privacy using zero-knowledge proofs—cryptographic techniques that confirm facts without exposing the full data behind them. Each citizen’s identity data is encrypted locally and linked to decentralized identifiers (DIDs) compatible with global digital-identity standards.
GovTech Secretary Jigme Tenzing described the move as a step toward “strengthening the security of our digital identity” by utilizing Ethereum’s global validator network and proven resilience. Aya Miyaguchi, Executive Director of the Ethereum Foundation, praised the decision as “deeply inspiring,” adding that Bhutan’s commitment to a self-sovereign system “marks not only a national achievement but a global step toward a more open and secure digital future.” The migration completes a multi-year progression that began in 2023 when the country’s Crown Prince became the first digital citizen registered on the pilot platform. Bhutan shifted to Polygon in August 2024 to reduce costs and test scaling options before ultimately anchoring on Ethereum to ensure long-term transparency and decentralization.
The full credential transfer to Ethereum is scheduled to conclude by the first quarter of 2026. According to government officials, the integration phase already allows residents to verify identity credentials, sign digital documents, and access public services through blockchain-based verification. The design eliminates the need for large centralized databases, reducing exposure to hacks and unauthorized surveillance. The system also supports interoperability for potential future applications such as digital signatures, property records, and e-governance tools. Bhutan’s public broadcaster confirmed that its prior Polygon deployment now functions as a companion layer, feeding verified data to Ethereum’s mainnet contracts.
Government sources frame the Ethereum migration as part of Bhutan’s broader digital-sovereignty strategy, balancing modern technology with the country’s cultural emphasis on privacy and ethics. The move places Bhutan alongside countries like Brazil and Vietnam that have experimented with blockchain-based identity systems, though none at a comparable national scale. Officials argue that using a public blockchain ensures auditability and citizen trust, while critics caution that transparency could also invite surveillance or data-traceability risks if metadata is mishandled. Privacy advocates stress that even with zero-knowledge protections, behavioral patterns on public ledgers may still reveal identifying information.
Beyond the identity initiative, Bhutan has become a notable sovereign participant in digital assets. The country reportedly holds 11,286 BTC—worth about $1.31 billion at current prices—accumulated largely through hydro-powered mining operations in its mountain regions. Some disclosures also reference modest ETH reserves of roughly 656 coins, valued near $2.7 million, potentially used for network fees and validator costs tied to the identity rollout. These holdings rank Bhutan among the world’s top five state-level Bitcoin owners, behind the U.S., China, U.K., and Ukraine, underscoring the nation’s long-term interest in blockchain infrastructure beyond investment speculation.
Bhutan’s adoption of Ethereum extends a trend of governments experimenting with decentralized identity to modernize bureaucratic systems. While the technical migration signals confidence in Ethereum’s durability and neutrality, it also tests how public networks can balance transparency with citizen privacy at scale. The next phase—migrating all credentials by early 2026—will determine whether a blockchain can handle the administrative backbone of an entire nation.
This article has been refined and enhanced by ChatGPT.
