Bhutan Shifts National Identity System to Ethereum Blockchain

The Kingdom of Bhutan has adopted Ethereum to manage the national identities of its approximately 800,000 citizens, utilizing the blockchain’s immutability and decentralization.

The transition from Polygon to Ethereum has reached completion, with the remaining migration of all citizen credentials set to conclude by early 2026, as noted by the Ethereum Foundation President Aya Miyaguchi, during an event attended by Ethereum co-founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk.

“It’s deeply inspiring to see a nation commit to empowering its citizens with self-sovereign identity,” said Miyaguchi, emphasizing that the integration with Ethereum is a pioneering effort.

“This milestone signifies not just a national achievement but a global advancement toward a more transparent and secure digital future.”

Employing a blockchain-based identity system has been welcomed in the crypto community for its durability, transparency, and privacy attributes.

Ethereum: Bhutan’s Third Attempt at Blockchain ID

Previously, Bhutan operated its national ID on Polygon since August 2024 and on Hyperledger Indy before that. Bhutan joins a select group of countries like Brazil and Vietnam that have implemented blockchain-based self-sovereign identity solutions.

Miyaguchi acknowledged the significant contributions of Bhutan’s National Digital Identity and GovTech teams, as well as local crypto community members, in facilitating the Ethereum integration.

Bhutan’s Growing Bitcoin Holdings

Known for prioritizing Gross National Happiness, Bhutan has emerged as a notable player in crypto adoption, presently ranking fifth globally in terms of Bitcoin holdings, with an inventory amassed through renewable energy mining from its Himalayan hydropower stations.

As of now, Bhutan holds 11,286 Bitcoin, worth roughly $1.31 billion, behind only the US, China, the UK, and Ukraine.

Bhutan could also be looking into more cryptocurrency ventures, having met with ex-Binance CEO Changpeng Zhao in September, although specific details from their discussions remain undisclosed.