Bhutan migrates national ID system to Ethereum, becoming first country with blockchain-based identity

Bhutan has officially migrated its National Digital Identity framework to the Ethereum blockchain, becoming the first nation in the world to anchor a population wide digital ID on a public network.

This bold step highlights Bhutan’s ongoing vision for digital sovereignty and innovation through the Bhutan NDI system.

From Pilot to Public Blockchain

The NDI system, introduced under the National Digital Identity Act of 2023, enables citizens to securely manage and verify their credentials using self sovereign identity tools. These tools allow access to government and financial services without exposing personal data.

Originally built on Hyperledger Indy, the NDI system transitioned to Polygon in 2024 to enhance scalability and privacy through the CREDEBL protocol and zero knowledge proofs. Now, its move to Ethereum marks the final step from a permissioned blockchain to a globally accessible public network.

According to Bhutan’s GovTech Agency, full integration of the Bhutan NDI system is already underway with complete credential migration expected by Q1 2026. The upgraded system uses cryptographic hashes and verifiable credentials anchored on Ethereum keeping sensitive information off chain for enhanced privacy.

At the official launch in Thimphu attended by Ethereum co-founder Vitalik Buterin and Crown Prince Jigme Namgyel Wangchuck Bhutan’s first registered “digital citizen” Ethereum Foundation President Aya Miyaguchi hailed the event as

“a global step toward an open and secure digital future.”

Digital Sovereignty Through the Bhutan NDI System

The migration of the Bhutan NDI system reflects the nation’s broader “Digital Drukyul” vision a strategy that balances innovation, governance and sovereignty. In partnership with the Ethereum Foundation, Bhutan’s GovTech Agency plans to leverage the Bhutan NDI system for broader onchain applications including cross border identity verification and secure decentralized services.

Hackathons and developer programs will be launched to extend the capabilities of the Bhutan NDI system encouraging global collaboration around open digital infrastructure.

Earlier in 2025, Bhutan’s Gelephu Mindfulness City added BTC, ETH and BNB to its reserves, and a crypto tourism payment network was launched with Binance. These initiatives align with the growth of the Bhutan NDI system showcasing the nation’s embrace of blockchain for governance and economic innovation.

While countries like Brazil and Vietnam continue to test self sovereign identity pilots, the Bhutan NDI system positions Bhutan as the first to achieve a nationwide decentralized ID implementation anchored on a public blockchain.