TLDR
- Bhutan is migrating its national digital identity system from Polygon to Ethereum, making it the first country to anchor a population-scale ID system on a public blockchain
- The integration with Ethereum is complete, with full migration of all 800,000 resident credentials expected by Q1 2026
- Citizens will be able to verify their identities and access government services using cryptographically secure, self-sovereign credentials
- Bhutan is the fifth-largest Bitcoin-holding nation with 11,286 BTC worth $1.31 billion, acquired through hydropower mining operations
- The country previously tested its ID system on Hyperledger Indy before moving to Polygon in August 2024
The Kingdom of Bhutan has completed the integration of its National Digital Identity platform with the Ethereum blockchain. The move makes the Himalayan nation the first country to anchor a live, population-scale identity system on a public network.
BREAKING:
🇧🇹 BHUTAN IS NOW THE FIRST NATION WITH A DIGITAL IDENTITY SYSTEM ON ETHEREUM! pic.twitter.com/pHSbP9Fk20
— Coinvo (@ByCoinvo) October 14, 2025
The system will serve Bhutan’s roughly 800,000 citizens. They will be able to verify their identities and access government services through the blockchain-based platform.
The integration with Ethereum is now complete. The full migration of all resident credentials is scheduled to finish by the first quarter of 2026.
1/ Today, Bhutan celebrates a historic milestone, becoming the first nation to anchor its national digital identity system on Ethereum. 🇧🇹@VitalikButerin and I were honored to join the launch ceremony on behalf of the Ethereum community, graced by His Royal Highness. pic.twitter.com/KA4tOYbsJ4
— Aya Miyaguchi (@AyaMiyagotchi) October 13, 2025
Ethereum co-founder Vitalik Buterin attended the launch ceremony alongside Aya Miyaguchi, president of the Ethereum Foundation. Bhutan’s Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk also participated in the event.
Miyaguchi described the integration as a world-first. She stated the milestone represents a step toward a more open and secure digital future.
The new system allows citizens to cryptographically prove attributes such as age, residency, or citizenship. These verifications happen without relying on centralized databases.
Bhutan’s Blockchain Journey
Bhutan launched its digital identity system in 2023. The platform initially used W3C identity standards and operated through a partnership with Input Output Global, the developer of Cardano.
The system first ran on Hyperledger Indy. In August 2024, Bhutan moved the platform to Polygon.
Crown Prince Jigme Namgyel Wangchuck became Bhutan’s first digital citizen. This marked the symbolic start of the program’s national rollout.
The country’s National Digital Identity and GovTech teams led the Ethereum integration. Members of Bhutan’s crypto community also contributed to the project.
Privacy Concerns
The transition to a public blockchain has raised questions about privacy. Kirill Avery, founder and CEO of Alien, a decentralized network, noted that transparency can benefit auditability.
However, he pointed out that storing national IDs on a public chain like Ethereum presents challenges. Once credentials exist on-chain, they remain permanently visible.
Avery stated that digital identity systems need to balance being verifiable without being traceable. He questioned whether true self-sovereign identity can exist on infrastructure that governments can monitor.
Bhutan has positioned itself as a leader in crypto adoption. The country measures national progress through Gross National Happiness rather than traditional economic metrics.
The kingdom currently holds 11,286 Bitcoin valued at $1.31 billion. This makes Bhutan the fifth-largest Bitcoin-holding nation-state, behind only the US, China, the UK, and Ukraine.
Bhutan acquired its Bitcoin through mining operations powered by renewable energy from its Himalayan hydropower dams. The country’s Bitcoin balance has decreased from roughly 13,000 BTC in late 2024 to current levels.
Bhutan also holds 656 ETH worth approximately $2.73 million. The country met with former Binance CEO Changpeng Zhao in September, though details of their discussion were not disclosed.
Earlier this year, Bhutan’s planned Special Administrative Region proposed holding Bitcoin and Ethereum as strategic reserves. The country’s Tourism Council partnered with Binance Pay to integrate crypto payments across hotels and local services.
