Bhutan is taking a significant leap in digital sovereignty by migrating its National Digital Identity (NDI) system to the Ethereum blockchain. This move impacts nearly 800,000 residents, providing them with enhanced control and security over their identities while accessing government services. The full migration of all resident credentials is expected to be completed by early 2026.
Bhutan's NDI, launched in 2023 under the patronage of His Royal Highness The Gyalsey, was the first self-sovereign identity system deployed at a national scale. This system empowers citizens to verify their identity aspects without sharing personal data through centralized systems. The move to Ethereum enhances data integrity, resilience, and privacy while reducing reliance on centralized databases. The NDI platform can issue verifiable credentials and enable digital signatures directly on Ethereum, supporting Bhutan's self-sovereign identity framework.
Prime Minister Lyonchen Tshering Tobgay emphasized that integrating Bhutan's NDI platform with Ethereum marks a major step in advancing the nation's digital sovereignty. By leveraging Ethereum's globally distributed network, the country aims to strengthen the security, transparency, and resilience of its digital infrastructure. This milestone affirms Bhutan's vision of building an interoperable and user-controlled identity system, connecting the nation to global ecosystems while upholding digital sovereignty.
Ethereum Foundation President Aya Miyaguchi said Bhutan's approach reflects Ethereum's mission to build open, inclusive systems that strengthen trust and empower individuals to control their data without central points of failure. Miyaguchi also noted that the Ethereum integration was a world-first.
Bhutan has been quietly becoming a leader in crypto adoption in recent years. The country is reportedly the fifth-largest Bitcoin-holding nation-state, having amassed its holdings through mining using renewable energy at its Himalayan hydropower plants.
The integration of blockchain into a government's national ID system has long been considered a promising crypto use case, particularly due to its immutability, transparency, and privacy features. Previously, Bhutan ran its national ID system on Polygon from August 2024, and Hyperledger Indy before that.
Bhutan's GovTech Agency, with support from the Ethereum Foundation, organized a three-day hackathon in Paro focused on building apps that use the NDI system. Over 13 teams developed tools that integrate digital ID into public services and community apps, including e-voting platforms, digital artisan registries, and land ownership verification tools.
