Bhutan Migrates National ID System from Polygon to Ethereum

Bhutan’s digital identity evolution has followed a deliberate path, beginning on Hyperledger Indy before moving to Polygon in August 2024. The latest transition to Ethereum represents the most significant upgrade yet, with integration already completed and full migration of all resident credentials scheduled for completion by the first quarter of 2026. The announcement came during a landmark event that featured Ethereum co-founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk, underscoring the strategic importance Bhutan places on this digital transformation.

Aya Miyaguchi, President of the Ethereum Foundation, revealed that Bhutan’s National Digital Identity and GovTech departments were instrumental in driving the Ethereum integration, supported by members of the country’s growing crypto community and technical contributors who facilitated the transition. Miyaguchi emphasized the global significance of this milestone, stating it represents “a global step toward a more open and secure digital future for the long term” and noting the particular significance of this achievement during Ethereum’s 10th anniversary year.

The migration to Ethereum’s blockchain infrastructure brings enhanced security and transparency capabilities to Bhutan’s national identity system, particularly through the implementation of zero-knowledge (zk) proofs. This cryptographic technology enables privacy protection while maintaining the verification capabilities essential for government services. Blockchain-powered national ID systems are increasingly recognized for their potential to enhance transparency while protecting citizen privacy, and Bhutan’s implementation represents one of the most comprehensive national deployments to date.

This strategic move aims to strengthen trust in Bhutan’s digital governance infrastructure by leveraging Ethereum’s robust ecosystem and security features. The self-sovereign identity (SSI) framework allows citizens to maintain control over their personal data while enabling secure authentication for government platforms and services. Bhutan joins other nations like Brazil and Vietnam that have experimented with similar blockchain-based identity initiatives, though Bhutan’s full national implementation places it at the forefront of this emerging technology adoption.

Beyond the national identity migration, Bhutan has established itself as a significant player in the global cryptocurrency landscape. According to data compiled by BitcoinTreasuries, the kingdom currently owns 6,371 BTC, making it the sixth-largest government BTC holder globally, following only the United States, China, the United Kingdom, Ukraine, and the United Arab Emirates. This substantial Bitcoin treasury reflects Bhutan’s strategic approach to digital assets as part of its national economic strategy.

Earlier this year, Bhutan partnered with Bitdeer Technologies to raise $500 million to expand its Bitcoin mining operations, with plans to support a 100-megawatt hydro-powered mining facility. Druk Holding & Investments, the Bhutan government’s investment arm, is leading this initiative and targeting institutional investors to participate in the expansion. This commitment to renewable energy-powered mining aligns with Bhutan’s environmental values while supporting its growing cryptocurrency holdings.

The combination of a national identity system on Ethereum and substantial Bitcoin holdings positions Bhutan uniquely in the global digital economy. The country’s proactive approach to blockchain technology adoption demonstrates how smaller nations can leverage emerging technologies to enhance governance, economic resilience, and global positioning. As blockchain technology continues to mature, Bhutan’s early and comprehensive adoption provides a compelling case study for other nations considering similar digital transformations.