Bhutan Makes Historic Shift: National Digital Identity System Migrates to Ethereum

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Bhutan, a South Asian nation known for embracing technological innovation, is upgrading its National Digital Identity (NDI) system from Polygon to Ethereum. This move is part of the country’s ongoing efforts to enhance blockchain adoption and digital security.

The Bhutan Broadcasting Service reported that the NDI system, previously hosted on the Polygon blockchain, has now been integrated with Ethereum. The complete migration is projected to finish by the first quarter of 2026.

Jigme Tenzing, Secretary of Bhutan’s GovTech Agency, stated that shifting to Ethereum will reinforce the security of the country’s digital identity system, building on its previous foundation with Polygon.

Self-Sovereign Digital Identity for Citizens

Bhutan’s NDI leverages self-sovereign identity technology, enabling roughly 800,000 residents to securely store and manage digital credentials for online services. The system initially launched on Polygon in August 2024, marking Bhutan’s early adoption of blockchain for national identity management.

Ethereum Foundation Celebrates Bhutan’s Milestone

Aya Miyaguchi, President of the Ethereum Foundation, highlighted Bhutan as the first nation to anchor a national digital identity system on Ethereum. Both Miyaguchi and Ethereum co-founder Vitalik Buterin attended the launch ceremony in Bhutan on Monday.

“When I visited Bhutan in May 2024, I observed a shared vision between Bhutan and Ethereum: a commitment to building the future on strong foundational values,” Miyaguchi remarked. “This achievement represents both a national milestone and a step forward globally toward a more secure and open digital future.”

Bhutan’s Blockchain and Crypto Initiatives

Beyond the NDI, Bhutan has actively integrated blockchain into its digital economy. The nation has also mined Bitcoin in recent years, amassing a significant crypto reserve. Bhutan currently holds 6,371 BTC, ranking as the sixth-largest government Bitcoin holder worldwide, after the U.S., China, the U.K., Ukraine, and the UAE, according to BitcoinTreasuries data.