Ethereum Powers Bhutan’s National Digital Identity System Covering 800,000 Citizens

• Bhutan becomes the first country to run its national digital ID system on Ethereum, giving about 800,000 citizens secure access to government services.
• The full migration from Polygon to Ethereum is expected to be completed by early 2026, marking a key step in Bhutan’s digital transformation.

Bhutan has started using Ethereum to run its national digital identity system. The move allows about 800,000 citizens to securely verify their identity and access government services. The project shows how the small Himalayan country is using technology to strengthen trust between citizens and the government.

Bhutan Moves Its National ID to Ethereum

According to reports, Bhutan has moved its self-sovereign identity system from Polygon to Ethereum. The switch was announced at a ceremony attended by Prime Minister Tshering Tobgay, Crown Prince Jigme Namgyel Wangchuk, Ethereum co-founder Vitalik Buterin, and Ethereum Foundation President Aya Miyaguchi.

Miyaguchi said the integration has already been completed, while the full transfer of all citizen records should finish by the first quarter of 2026. She described the step as a world first and praised Bhutan for giving its people more control over their digital identity.

With Ethereum, citizens can verify who they are and use public services without fear of their information being changed or lost. The system is built on blockchain, which keeps records safe and prevents tampering. It also includes a privacy feature called zero-knowledge proof, which lets users confirm their details without revealing extra personal data.

Still, Bhutan’s National Digital Identity and GovTech teams led the project, supported by local tech experts. More so, the move is seen as part of Bhutan’s broader effort to modernize government services while keeping security and privacy intact. Officials say the new platform will make it easier for citizens to access social benefits, register property, and carry out official transactions.

Meanwhile, it is important to mention that earlier this year, as mentioned in our previous news brief, it made a major headway in its digital innovation effort. The country became the first country in the world to launch a national-level crypto tourism payment system.

A Growing Role in Global Crypto Innovation

Bhutan’s adoption of Ethereum is another sign of its growing interest in digital technology. The country had earlier used Hyperledger Indy and later switched to Polygon in 2024 before now settling on Ethereum. Market watchers believe that this third move is simply showing Bhutan’s aim to find a stable and secure long-term solution for digital identity management.

At the same time, Bhutan has quietly built a strong presence in the cryptocurrency space. It is now ranked as the fifth-largest country in Bitcoin holdings, with 11,286 BTC valued at around $1.31 billion. Most of this comes from Bitcoin mining powered by the country’s hydropower plants.

As mentioned in our previous publication,  Bhutan’s prime minister disclosed that the country has used Bitcoin to support its health sector. According to him, while part of it goes toward providing free healthcare and environmental programs, the main use of Bitcoin has been to pay the salaries of public servants.

By turning to Ethereum, Bhutan is showing that blockchain can serve real public needs, not just financial ones. The project may set an example for other countries looking to build safer and more transparent digital identity systems.