Bhutan Launches National ID System on Ethereum for Enhanced Security

In a significant development for digital identity innovation, Bhutan has successfully transitioned its self-sovereign ID system from Polygon to Ethereum. This move signifies a milestone in government-led blockchain adoption, enabling nearly 800,000 residents to verify identities and access public services with enhanced security and privacy features. The migration aligns with Bhutan’s broader engagement with blockchain technology, highlighting its progressive approach to integrating crypto solutions into national infrastructure.

The South Asian nation of Bhutan has announced the successful migration of its national self-sovereign ID system onto the Ethereum blockchain, moving away from its previous Polygon infrastructure. This landmark upgrade empowers citizens to independently verify their identities, facilitating seamless access to various government services through a secure, transparent platform. The full transfer of all resident credentials is anticipated to conclude by the first quarter of 2026, according to Ethereum Foundation President Aya Miyaguchi, who attended the launch alongside Ethereum co-founder Vitalik Buterin, Bhutan’s Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk.

“It’s inspiring to see a nation dedicate itself to empowering its citizens with self-sovereign identity,” Miyaguchi commented on X, emphasizing that this Ethereum-based integration is a world-first. She added, “This achievement not only signifies a national milestone but also marks a global step toward a more open, secure digital future for the long term.”

“This milestone marks not only a national achievement but a global step toward a more open and secure digital future for the long term.”

Incorporating blockchain into government systems offers promising benefits due to its inherent qualities of immutability, transparency, and privacy—especially when employing zero-knowledge proofs. Bhutan’s move is viewed as a pivotal example of how blockchain can revolutionize public sector services, encouraging other nations to adopt similar secure, decentralized identity solutions.

Ethereum’s Role in Bhutan’s Digital Identity Portfolio

Bhutan previously operated its national ID system on Polygon since August 2024 and had previously used Hyperledger Indy. Other nations, like Brazil and Vietnam, are also exploring blockchain-based self-sovereign identity systems, but Bhutan’s transition to Ethereum makes it one of the few countries utilizing multiple blockchain frameworks for vital government functions.

Miyaguchi highlighted the collaborative effort involved, noting the vital roles played by Bhutan’s National Digital Identity and GovTech teams, as well as various contributors within the local crypto community, in facilitating Ethereum’s integration.

Bhutan’s Growing Crypto Ecosystem

Beyond digital identities, Bhutan has quietly established itself as a leader in cryptocurrency adoption, with a notable focus on Bitcoin. The country ranks as the fifth-largest Bitcoin-holding nation globally, with approximately 11,286 BTC worth over $1.3 billion, primarily accumulated through renewable energy-powered mining at Himalayan hydropower dams.

Furthermore, Bhutan continues to explore broader crypto initiatives. In late September, it reportedly held meetings with Binance CEO Changpeng Zhao, fueling speculation about potential future collaborations or crypto projects in the country.

Pay in #BNB using @Binance Pay in Bhutan🇧🇹, nice and easy. 😏 pic.twitter.com/B5p3YolJjJ

— CZ 🔶 BNB (@cz_binance) September 29, 2025

As Bhutan advances its blockchain and crypto strategies, its progressive stance on decentralized identity and digital asset accumulation signals a broader commitment to integrating blockchain innovation within its socio-economic framework. This approach positions Bhutan as a noteworthy leader in the evolving landscape of global crypto regulation and digital sovereignty.