Bhutan Goes Full Blockchain: First Nation to Launch National Digital Identity on Ethereum Cue the Crypto Nationalism
Hold your scrolls: Bhutan just pulled a move most countries only dare to dream of. The Himalayan kingdom has migrated its National Digital Identity (NDI) system to Ethereum, becoming the first nation in the world to anchor its national ID on a public blockchain. Vitalik Buterin and Ethereum Foundation President Aya Miyaguchi were both present at the launch ceremony, giving the moment a touch of crypto royalty.
Previously, Bhutan ran its NDI platform on Polygon after initially experimenting with Hyperledger Indy. But now, they’ve made the leap to Ethereum to strengthen security, transparency, and resilience. The migration is already underway, with full rollout for all resident credentials expected by early 2026.
At the ceremony, both Vitalik and Miyaguchi stood alongside Bhutan’s Prime Minister and Crown Prince, endorsing the move as more than symbolic it’s being framed as a global milestone in the march toward blockchain governance. Miyaguchi even described it as “a global step toward a more open and secure digital future.”
So, how does this new identity system actually work? It’s built on a self-sovereign identity (SSI) model using verifiable credentials, allowing citizens to prove facts like age, residency, or citizenship without exposing personal data. Thanks to Ethereum’s advanced cryptographic tools such as zero-knowledge proofs and selective disclosure Bhutanese citizens can expect a new level of privacy while maintaining public verifiability.
This isn’t just a tech flex. Bhutan has already earned a quiet reputation as one of the world’s most forward-thinking crypto nations, with its sovereign investment arm reportedly holding Bitcoin and Ethereum reserves. Now, by using Ethereum for national digital identity, Bhutan is signaling that it wants to be a long-term player in the digital sovereignty game.
Of course, the move isn’t without risk. Putting national identity infrastructure on a public blockchain brings challenges like governance, scalability, and data privacy. Questions about recovery mechanisms such as what happens if a citizen loses their private key—are still being ironed out. Nonetheless, Bhutan’s step sets a new benchmark for digital nationhood.
For now, the world watches as Bhutan proves that big things can come from small nations. It’s not just about being first it’s about showing that blockchain tech isn’t only for traders, but also for governments that dare to innovate.
FAQs
Q1: Is Bhutan really the first country to launch its national ID on Ethereum?
Yes. Bhutan is the first country in the world to anchor its National Digital Identity system directly on Ethereum’s public blockchain.
Q2: When will the full migration be completed?
The government aims to have all citizen and resident credentials live on Ethereum by the first quarter of 2026.
Q3: Why did Bhutan move from Polygon to Ethereum?
Ethereum offers greater decentralization, stronger cryptographic capabilities, and a wider developer ecosystem, making it a more robust long-term choice for national infrastructure.
Q4: Who attended the launch ceremony?
Ethereum co-founder Vitalik Buterin and Ethereum Foundation President Aya Miyaguchi attended alongside Bhutan’s Prime Minister and Crown Prince.
Q5: Are there privacy or security risks?
Yes. Even though Ethereum offers high transparency, it’s crucial that identity data remains encrypted and that only verifiable credentials not personal information are stored on-chain.
Q6: What happens if a citizen loses their private key or credentials?
Bhutan’s digital ID system will include secure recovery mechanisms, such as key backups or authorized reissuance, to prevent citizens from being permanently locked out.