Bhutan Becomes First Country to Adopt Ethereum for National Digital Identity System

Bhutan has become the first country to use the Ethereum network for its national digital identity system, with Ethereum co-founder Vitalik Buterin attending the launch ceremony. The country aims to migrate its entire NDI platform to Ethereum by early 2026, allowing citizens to use cryptographic proof for authentication without revealing personal information. This move follows Bhutan's adoption of digital assets, including directly mining Bitcoin using its hydropower plants and holding approximately $1.31 billion worth of Bitcoin.

Bhutan has made a significant stride in digital modernization by becoming the first country to integrate its National Digital Identity (NDI) system with the Ethereum blockchain. The transition, which began in 2023, marks a pivotal moment in the country's digital infrastructure, enhancing security, transparency, and resilience.

The NDI system, initially launched in 2023, was initially built on the Polygon blockchain. However, the government has now migrated to Ethereum, with the full migration scheduled for completion by early 2026 Ethereum Powers Bhutan’s National Digital Identity for 800,000 Citizens^[1]. This move was officiated by His Royal Highness Gyalsey Jigme Namgyel Wangchuck, the Crown Prince of Bhutan, at an announcement event on Monday Ethereum Powers Bhutan’s National Digital Identity for 800,000 Citizens^[1].

The integration of Ethereum into Bhutan's NDI system enables citizens to securely verify their identities and access government services through a mobile wallet backed by biometric authentication. This decentralization ensures that users have control over their digital IDs, eliminating unauthorized access and enhancing privacy and safety Ethereum Powers Bhutan’s National Digital Identity for 800,000 Citizens^[1]. Secretary of the GovTech Agency, Jigme Tenzing, highlighted the security benefits of Ethereum, stating that it is one of the most decentralized blockchains, making it virtually impervious to disruption Ethereum Powers Bhutan’s National Digital Identity for 800,000 Citizens^[1].

The Ethereum Foundation President, Aya Miyaguchi, hailed this integration as a global success, positioning Bhutan as a leader in digitalization. The move not only strengthens the security of the digital identity system but also opens doors for developers to build use-case applications for Bhutan residents through the Ethereum Foundation platform Ethereum Powers Bhutan’s National Digital Identity for 800,000 Citizens^[1]. The CEO of Druk Holding and Investments (DHI) confirmed that numerous applications could be built on this platform.

Bhutan's adoption of Ethereum for its NDI system aligns with its broader digital finance strategy. Earlier this year, the country outlined a proposal to hold Bitcoin and Ethereum as part of its strategic reserves to support its broader digital finance strategy Bhutan to Anchor National Digital ID on Ethereum by Early 2026^[2]. This move follows Bhutan's adoption of digital assets, including directly mining Bitcoin using its hydropower plants and holding approximately $1.31 billion worth of Bitcoin Bhutan to Anchor National Digital ID on Ethereum by Early 2026^[2].

The integration of Ethereum into Bhutan's NDI system is a significant milestone in the country's digital transformation journey. By leveraging the power of blockchain technology, Bhutan aims to create a more open and secure digital future for its citizens. However, the transition also poses challenges, such as balancing transparency and privacy. Kirill Avery, founder and CEO of Alien, a decentralized network for real humans and verifiable AI agents, noted that while transparency is good for auditability, it can also raise privacy concerns. Bhutan's experiment might push other governments to think beyond control and toward interoperability Bhutan to Anchor National Digital ID on Ethereum by Early 2026^[2].