The Bhutanese government has taken a firm step toward digital sovereignty by migrating its national ID system to the Ethereum blockchain.
With a population of approximately 800.000, the small Himalayan kingdom becomes the first country in the world to anchor its identity infrastructure directly on a public blockchain. This decision marks a milestone in the evolution of digital governance systems and raises new possibilities for state use of decentralized technologies.
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The official launch ceremony took place this October, attended by Prime Minister Tshering Tobgay, Crown Prince Jigme Namgyel Wangchuk, and two key figures in the Ethereum ecosystem: Vitalik Buterin and Aya Miyaguchi. The event coincided with Ethereum's tenth anniversary, reinforcing the symbolism of a technology that has evolved from a disruptive idea to state infrastructure.
The system BhutanNDI, which supports this migration, allows citizens to verify their identity online without giving up complete control of their personal data.
Based on self-sovereign identifiers and zero-knowledge proofs, the new system seeks to ensure privacy and verifiability simultaneously. This architecture represents an evolution from previous systems used by Bhutan, which included Hyperledger Indy and Polygon. The transition to Ethereum is reportedly expected to be completed in the first quarter of 2026.
Ethereum as the backbone of state identity
The choice of Ethereum as the platform to host the digital identity of an entire nation is not solely a matter of technical criteria. Bhutan has sought to consolidate an infrastructure that reflects its values of transparency, resilience, and technological autonomy. By using a public blockchain, the country avoids dependence on centralized providers and strengthens its digital sovereignty.
The BhutanNDI system allows every citizen to own a unique identifier on the blockchain, with the ability to selectively share personal information. This decentralized logic aligns with the principles of self-sovereign identity, where individuals control their credentials without state or corporate intermediaries. The implementation of zero-knowledge proofs adds a layer of confidentiality, allowing information to be validated without revealing its content.
This approach contrasts with digital identity initiatives in other regions, such as the European Union, which has opted for centralized systems under the eIDAS 2.0 regulation. In Europe, the digital wallet will include documents such as ID cards and driver's licenses, but without using blockchain technology.
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Bhutan's commitment to Ethereum and cryptocurrencies is part of a broader strategy to integrate crypto technologies into its development model. The country has been quietly mining bitcoin for years., leveraging its hydroelectric capacity to operate in a clean and sustainable manner. Currently, Bhutan owns 6.220 bitcoins, which places it in seventh place worldwide among states with the largest BTC reserves, behind the United States, China, the United Kingdom, Ukraine, the United Arab Emirates, and El Salvador.
This positioning not only reflects a pragmatic view of the value of digital assets, but also a willingness to experiment with alternative models of state infrastructure. Identity migration to Ethereum, the accumulation of Bitcoin, and the development of applications like BhutanNDI are all part of a national laboratory for digital sovereignty.
An emerging model for the digital state
Bhutan's decision to integrate its national identity system into Ethereum raises relevant questions for the future of the relationship between technology and governance. Rather than adopting proprietary or centralized solutions, the country has opted for an open, verifiable, and distributed infrastructure. This model redefines the role of the state in the digital age, not as the exclusive controller of citizen information, but as a facilitator of tools that empower individuals.
The full migration, planned for 2026, will be closely watched by governments, technologists, and financial analysts. If the experiment proves successful, it could pave the way for new forms of interaction between citizens and public services, based on programmable trust and structural transparency.
In a world where digital identity is becoming increasingly central, Bhutan has decided to build its identity on an architecture that prioritizes autonomy and verifiability.
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