The Kingdom of Bhutan has taken a monumental step in digital governance, successfully migrating its national digital identity system from Polygon to the Ethereum blockchain. This ambitious project aims to integrate nearly 800,000 residents into the new system. According to Aya Miyaguchi, President of the Ethereum Foundation, the integration is fully operational, with a complete migration of all citizen credentials anticipated by the first quarter of 2026. This pioneering system marks the world’s first national ID implementation on Ethereum, empowering citizens with secure access to government services and the ability to authenticate themselves on a public, decentralized blockchain. This initiative clearly demonstrates Bhutan’s forward-thinking approach to technological innovation and its commitment to digital sovereignty.
Bhutan Leads with National ID on Ethereum
This transition to Ethereum represents Bhutan’s third iteration of a blockchain-based ID solution, following earlier deployments on Hyperledger Indy and Polygon. Miyaguchi emphasized that Ethereum offers enhanced stability, transparency, and resilience. Critically, it allows citizens to receive Verifiable Credentials (VCs) and securely sign documents digitally. She further elaborated that this shift provides residents with unparalleled control over their personal data, eliminating the need for centralized intermediaries and fostering true self-sovereign identities.
The significant launch ceremony was attended by prominent figures including Ethereum Co-Founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk. Prime Minister Tobgay highlighted that this migration significantly bolsters the security, transparency, and overall resilience of Bhutan’s digital infrastructure. Miyaguchi echoed this sentiment, calling it “a global step towards a more open and secure digital future.” The seamless Ethereum integration was a collaborative effort, driven by the dedicated local cryptocurrency community alongside Bhutan’s GovTech and National Digital Identity (NDI) teams.
Beyond its innovative digital identity efforts, Bhutan has also been strategically expanding its cryptocurrency reserves. Data indicates that the nation now stands as the world’s fifth-largest Bitcoin-holding country, possessing 11,286 BTC, valued at approximately $1.31 billion. These Bitcoin assets are notably mined using the country’s abundant renewable hydropower resources. Recently, over 2,000 BTC were strategically moved across various wallets to mitigate risk exposure, a practice similar to that adopted by nations like El Salvador.
The successful Ethereum integration and prudent Bitcoin asset management underscore Bhutan’s burgeoning leadership in the realm of blockchain adoption. The country is skillfully balancing technological innovation with environmental sustainability, utilizing renewable energy to support its digital assets while simultaneously enhancing citizen-centric services.
Through its national ID migration and broader crypto initiatives, Bhutan is establishing itself as a compelling global model. It showcases how a small, forward-thinking nation can effectively leverage blockchain technology to strengthen governance, build economic resilience, and champion digital sovereignty in the modern world.