Bhutan Migrates National ID System from Polygon to Ethereum in Landmark Move

The Kingdom of Bhutan is taking a major step in digital innovation by migrating its self-sovereign national ID system from Polygon to Ethereum, enabling nearly 800,000 citizens to securely verify their identities and access government services using blockchain technology.

According to Ethereum Foundation President Aya Miyaguchi, who announced the development alongside Ethereum co-founder Vitalik Buterin during a launch ceremony with Bhutan’s Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk, the integration with Ethereum is already complete. The migration of all resident credentials is expected to be finalized by the first quarter of 2026.

Miyaguchi praised Bhutan’s decision as “deeply inspiring,” calling it a “world-first” example of a nation adopting a self-sovereign identity (SSI) system powered by Ethereum. “This milestone marks not only a national achievement but a global step toward a more open and secure digital future for the long term,” she posted on X on Monday.

A Global First for Blockchain Identity

Bhutan’s decision to shift its identity infrastructure to Ethereum underscores the growing confidence in blockchain as a reliable backbone for national-level digital identity systems. Self-sovereign identity allows individuals to control their own credentials without centralized intermediaries, offering greater privacy and resilience against data breaches.

Experts say that using Ethereum’s network enhances both transparency and security while keeping personal data private. National Digital Identity (NDI) and GovTech teams collaborated closely with the Ethereum Foundation to ensure the system’s compliance, scalability, and usability.

Previously, Bhutan’s ID system ran on Polygon since August 2024, and before that on Hyperledger Indy. Other countries also experimenting with blockchain-based ID frameworks include Brazil and Vietnam.

Expanding Crypto Ambitions in Bhutan

Beyond digital identity, Bhutan has been quietly building a strong presence in the crypto and blockchain ecosystem. Known for measuring progress by Gross National Happiness, the nation has leveraged its abundant hydropower resources to mine Bitcoin sustainably.

Data from BitBo’s Bitcoin Treasuries shows Bhutan holds 11,286 BTC, valued at approximately $1.31 billion, ranking it as the fifth-largest sovereign Bitcoin holder — behind only the United States, China, the United Kingdom, and Ukraine.

In late September, Bhutan’s officials also met with former Binance CEO Changpeng Zhao, sparking speculation about future collaborations or additional blockchain initiatives, though no details have been disclosed.