Bhutan Migrates National ID System to Ethereum Blockchain

Bhutan has migrated its national digital identity system from Polygon to Ethereum, covering nearly 800,000 residents. Ethereum Foundation President Aya Miyaguchi said the integration is now fully operational, with the full migration of all citizen credentials expected to finish by the first quarter of 2026. This system will be the world's first national ID implementation on Ethereum, enabling citizens to access government services and authenticate themselves on a public decentralised blockchain. This initiative shows Bhutan's ongoing commitment to technological innovation and digital sovereignty. 

Bhutan Becomes First Nation to Implement National ID on Ethereum

After previous implementations on Hyperledger Indy and Polygon, this shift to Ethereum marks Bhutan's third blockchain-based ID solution. Miyaguchi highlighted that Ethereum provides greater stability, transparency, and resilience while enabling citizens to receive Verifiable Credentials (VCs) and digitally sign documents securely. She elaborated that this change gives residents control over their data without the need for centralised middlemen and empowers people with self-sovereign identities.

The launch ceremony was attended by Ethereum Co-Founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk. Prime Minister Tobgay said the migration strengthens the security, transparency, and resilience of Bhutan's digital infrastructure, while Miyaguchi described it as “a global step towards a more open and secure digital future.”  The local cryptocurrency community and Bhutan's GovTech and National Digital Identity (NDI) teams were instrumental in the Ethereum integration. 

Beyond digital identities, Bhutan has quietly expanded its cryptocurrency holdings. As per the data by bitbo.io, the country is now the fifth-largest Bitcoin-holding nation in the world, with 11,286 BTC valued at around $1.31 billion (roughly Rs. 11,630 crore), mined using renewable hydropower. More than 2,000 BTC was recently transferred across several wallets to lower risk exposure, mirroring tactics employed by countries such as El Salvador. 

The Ethereum integration and strategic Bitcoin management emphasise Bhutan's growing leadership in blockchain adoption. The country balances innovation with sustainability, using renewable energy to support digital assets while improving citizen-centric services. 

The national ID migration and crypto initiatives are helping Bhutan position itself as a global example of how blockchain can enhance governance, economic resilience, and digital sovereignty in a small, forward-looking nation.