Bhutan is transitioning its national self-sovereign identity (SSI) system from Polygon to Ethereum. This move will enable approximately 800,000 citizens to verify their identities and access government services through the Ethereum blockchain.

Ethereum for National ID

Aya Miyaguchi, President of the Ethereum Foundation, shared on social media that the integration is complete and that all resident credentials will be transferred by the first quarter of 2026. This announcement coincided with a significant event featuring Ethereum co-founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk.

Decentralized national ID systems are gaining recognition for their ability to enhance transparency and security, particularly with zero-knowledge (zk) proofs ensuring privacy protection.

Bhutan’s digital ID journey commenced on Hyperledger Indy before switching to Polygon in August 2024. Now, with the Ethereum adoption, the nation aims to bolster trust in its digital governance network. Countries like Brazil and Vietnam are also exploring blockchain-based identity projects.

Miyaguchi mentioned that Bhutan’s National Digital Identity and GovTech departments played crucial roles in achieving Ethereum integration, aided by the growing crypto community and other technical contributors.

“This milestone marks not only a national achievement but a global step toward a more open and secure digital future for the long term. The moment felt even more meaningful as it happens during Ethereum’s 10th year. A reminder of how far we’ve come from ideas to real-world impact.”

Royal Crypto Ambitions

In addition to integrating blockchain into its digital economy, Bhutan has been involved in Bitcoin mining to increase its crypto reserves. Currently, the kingdom possesses 6,371 BTC, making it the sixth-largest governmental holder of Bitcoin globally, behind the US, China, the UK, Ukraine, and the UAE, based on data compiled by BitcoinTreasuries.

Earlier this year, Bhutan partnered with Bitdeer Technologies to secure $500 million aimed at expanding its Bitcoin mining capabilities, facilitating a 100-megawatt hydro-powered mining facility. Druk Holding & Investments, the investment arm of the Bhutanese government, will also be involved, looking to target institutional investors.