Bhutan’s Big Leap: Moving Its National ID to Ethereum Blockchain

In a world where data leaks and privacy breaches make headlines every month, the small Himalayan nation of Bhutan is taking a bold new step into the future. In October 2025, Bhutan decided to move its national digital ID system known as the Bhutan National Digital Identity (NDI) from the Polygon blockchain to Ethereum. This might sound like a simple software upgrade, but in reality, it’s a historic move. Bhutan has become the first country in the world to run its national identity system fully on Ethereum. This decision could change how the world views identity verification, data protection, and personal control in the digital age.

The Bhutan NDI is designed to give every citizen a digital version of their identity one that can be used online to access government services like banking, healthcare, and education. But unlike traditional systems where your data is stored by the government or big tech companies, this system gives control directly to the citizens. In simple terms, this means Bhutanese people can verify who they are without giving away their private information. The system uses a privacy tool called Zero-Knowledge Proofs (ZKPs), which allows people to prove something is true (like being over 18 or having a valid ID) without revealing all their details.

For example:

• Traditional ID verification: “Here’s my name, birthdate, and address.”
• Blockchain-based ID verification: “I can prove I’m over 18, but you don’t need to know my birthdate.”

This keeps personal data safe while still making sure only verified users access services.

Why Ethereum?

Bhutan originally started testing its system on Polygon, a network that runs alongside Ethereum and offers cheaper transactions. However, in 2025, the government decided to fully migrate to Ethereum itself, mainly for its security, scalability, and global reach. Ethereum is considered one of the most secure and trusted blockchains in the world. It’s also home to thousands of developers who constantly improve its ecosystem. Bhutan’s leaders believe that moving to Ethereum will make their digital ID system more future-proof and easier to connect with other global blockchain projects.

The move was officially completed on October 10, 2025, during a ceremony attended by Prime Minister Tshering Tobgay, Crown Prince Jigme Namgyel Wangchuk, and Ethereum co-founder Vitalik Buterin. The remaining citizen credentials will be fully integrated by early 2026. Bhutan’s partnership with the Ethereum Foundation also strengthens the country’s growing tech ambitions. It’s not Bhutan’s first step into crypto, the nation is already known for mining Bitcoin using its abundant hydroelectric power. Bhutan currently holds around 11,000 BTC, ranking among the top five nations globally in state-level Bitcoin ownership.

Bhutan’s blockchain journey stands out because it combines ancient wisdom with modern technology. Known as the “Land of the Thunder Dragon,” Bhutan has always valued balance and happiness over profit. By using blockchain for national identity, the country is showing that technology can enhance trust and equality, not just create wealth.

Here’s a simple comparison to understand Bhutan’s evolution in identity technology:

 

System Type	Technology Used	Privacy Level	Control of Data	Example Use
Traditional ID	Centralized database	Low	Government/Institution	Passport, driver’s license
Hyperledger Indy	Private blockchain	Medium	Shared between entities	Pilot digital ID (2020–2023)
Polygon (2024)	Public blockchain	Medium-High	Citizen control (limited)	Bhutan NDI trial phase
Ethereum (2025–onward)	Public + ZK Proofs	Very High	Full citizen control	Bhutan’s main national ID

The announcement quickly spread across crypto and tech circles. Many praised Bhutan for taking a step toward digital sovereignty, where citizens control their data instead of corporations or governments. However, not everyone is convinced. Critics warn that placing a national ID on a public blockchain, even with privacy protections, could still pose risks if the technology fails or is hacked. Others question whether such a system can handle millions of daily transactions securely without high costs.

Still, the overall response has been largely positive. Online discussions on YouTube, Reddit, and X  highlight Bhutan’s vision as “a model for future nations.” Developers are already calling it a “blueprint for global digital identity.”

Bhutan’s transition could inspire many other countries to explore blockchain-based ID systems. If successful, it might lead to:

• Faster access to services – Citizens could verify themselves instantly for voting, taxes, or banking.
• Stronger data protection – Personal data stays private and under the citizen’s control.
• Cross-border recognition – Blockchain IDs could help people prove their identity internationally without multiple logins or forms.

Experts estimate that by 2026, the global market for digital identity could exceed $20 billion, with blockchain playing a major role. Bhutan’s move may push Ethereum’s adoption further, strengthening its reputation as more than just a cryptocurrency network.

The Road Ahead

Bhutan’s decision to migrate to Ethereum isn’t just a technical change, it’s a statement about the future of trust, governance, and human rights. It shows that even a small nation can take the lead in using technology for good. If successful, this project could mark the start of a new era where people truly own their digital identities. It’s a powerful message, in a world full of data leaks and privacy concerns, technology can be used not to control people, but to empower them.