The Kingdom of Bhutan has integrated its national digital identity system with the Ethereum blockchain, creating a secure and decentralised platform for nearly 800,000 citizens.
The move, which shifts the Self-Sovereign ID system from Polygon to Ethereum, aims to enhance data security, resilience, and privacy while giving residents direct control over their personal information.
Bhutan’s National Digital Identity (NDI) platform first launched on Hyperledger Indy, later moving to Polygon in August 2024.
The migration to Ethereum marks the country’s third blockchain-based national ID system and represents the first full-scale attempt globally to anchor a population’s identity to Ethereum.
Brazil and Vietnam have partially explored similar blockchain-based identity solutions, but Bhutan remains unique in its comprehensive nationwide implementation.
Aya Miyaguchi, President of the Ethereum Foundation, highlighted the significance of the integration, stating,
"The country's dedication to granting its citizens self-sovereign identity is deeply moving. This integration is the world's first attempt and a leap toward an open and secure digital future."
She joined Ethereum co-founder Vitalik Buterin, Prime Minister Lyonchen Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk at the launch ceremony.
The Ethereum-based system allows citizens to verify aspects of their identity without sharing sensitive personal data through centralised databases.
It supports verifiable credentials and digital signatures directly on Ethereum, strengthening privacy while maintaining transparency and immutability.
Buterin said,
"Decentralised digital identity empowers people by giving them more secure control over their data and their online lives.”
The government expects the migration of all resident credentials to be complete by the first quarter of 2026.
Bhutan’s National Digital Identity and GovTech teams, along with contributors from the local crypto community, played key roles in achieving the integration.
Beyond digital identity, Bhutan has emerged as a significant player in cryptocurrency adoption.
The nation holds 11,286 Bitcoin, valued at $1.31 billion, making it the fifth-largest Bitcoin-holding country after the US, China, the UK, and Ukraine.
Source: BiTBO
The holdings were accumulated through renewable energy mining at Himalayan hydropower facilities.
Recent discussions with former Binance CEO Changpeng Zhao suggest Bhutan may pursue further blockchain initiatives, including digital document signing and blockchain-based voting, though details remain limited.
Coinlive sees Bhutan’s experiment as a test case for the societal potential of blockchain beyond finance.
By decentralising identity, the nation could enhance trust in public services, reduce reliance on centralised databases, and empower citizens with control over their own information.
Yet the transition raises questions about accessibility, digital literacy, and long-term governance.
Will blockchain identity systems truly provide more inclusion, or could they unintentionally create new divides?
Bhutan’s journey offers a living laboratory to observe the balance between empowerment and responsibility in a digitised society.
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