Bhutan becomes first nation to anchor digital ID on Ethereum

Bhutan has migrated its national digital identity system to the Ethereum blockchain, marking a historic step toward decentralized public infrastructure.

Bhutan has begun migrating its National Digital Identity system to the Ethereum blockchain, becoming the world’s first nation to anchor a population-wide digital ID on a public network. 

The milestone was confirmed on Oct. 13 by Ethereum ( ETH ) Foundation President Aya Miyaguchi, who attended the launch ceremony in Thimphu alongside co-founder Vitalik Buterin and Crown Prince Jigme Namgyel Wangchuck, Bhutan’s first registered “digital citizen.”

From pilot to public blockchain

The NDI system, introduced under Bhutan’s National Digital Identity Act of 2023, allows citizens to manage and verify their credentials through self-sovereign identity tools, enabling secure access to services without exposing personal data.

Initially developed on Hyperledger Indy, it was moved to Polygon in 2024 to enhance privacy and scalability through the use of the CREDEBL protocol and zero-knowledge proofs.

The final step to Ethereum marks a move from permissioned infrastructure to an open, global network. According to the GovTech Agency, integration is complete, and full migration of credentials will be finalized by Q1 2026. The system uses cryptographic hashes and verifiable credentials anchored on-chain while keeping sensitive data off-chain. 

This approach combines decentralization with national governance norms to offer auditability, resilience, and privacy. At the launch, Miyaguchi described the event as “a global step toward an open and secure digital future,” aligning with Ethereum’s tenth anniversary and Bhutan’s goal of creating a trust-based digital society.

Digital sovereignity and Ethereum integration

The migration is a reflection of Bhutan’s larger “Digital Drukyul” vision, which aims to create national structures that strike a balance between innovation and sovereignty. With the help of the Ethereum Foundation and Bhutan’s GovTech Agency, the project will expand on-chain services like identity verification and safe cross-border apps by holding hackathons and developer initiatives.

The NDI program also connects with Bhutan’s growing crypto initiatives. Earlier in 2025, Gelephu Mindfulness City added BTC, ETH, and BNB to its reserves, while a crypto tourism payment system was launched in partnership with Binance. These improvements demonstrate Bhutan’s forward-thinking use of blockchain technology for both economic growth and governance.

While other nations like Brazil and Vietnam are testing self-sovereign identity pilots, Bhutan’s full-scale implementation positions it as a pioneer in decentralized public infrastructure.