TLDR
- Bhutan has completed integration of its national ID system with Ethereum, becoming the first country to use a public blockchain for population-scale identity management
- The system will serve all 800,000 Bhutanese citizens with self-sovereign digital credentials by Q1 2026
- Bhutan previously used Hyperledger Indy and Polygon before selecting Ethereum
- The country ranks as the fifth-largest Bitcoin holder among nations with 11,286 BTC worth $1.31 billion
- Vitalik Buterin and Ethereum Foundation President Aya Miyaguchi attended the official launch ceremony
The Kingdom of Bhutan has integrated its National Digital Identity platform with the Ethereum blockchain. This makes the small Himalayan nation the first country to anchor a complete national ID system on a public blockchain network.
The integration is now complete. Full migration of credentials for all 800,000 residents will finish by the first quarter of 2026.
Citizens can use the system to verify their identities and access government services. The blockchain-based platform allows people to prove attributes like age, residency, or citizenship without centralized databases.
Ethereum co-founder Vitalik Buterin attended the launch ceremony in Bhutan. Aya Miyaguchi, president of the Ethereum Foundation, also participated in the event alongside Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk.
Miyaguchi called the integration a world-first achievement. She stated it represents a step toward a more secure digital future.
From Hyperledger to Ethereum
Bhutan launched its digital identity program in 2023. The system initially used W3C identity standards through a partnership with Input Output Global, which develops Cardano.
The platform first operated on Hyperledger Indy. Bhutan then moved the system to Polygon in August 2024 before selecting Ethereum as its final solution.
Crown Prince Jigme Namgyel Wangchuck became the first digital citizen. This symbolized the start of the nationwide rollout.
Bhutan’s National Digital Identity and GovTech teams led the Ethereum integration. Local crypto community members also contributed to the transition.
Privacy Questions and Crypto Holdings
The move to a public blockchain has sparked privacy discussions. Kirill Avery, founder of Alien, a decentralized network, noted that storing national IDs on a public chain presents both benefits and risks.
Transparency helps with auditability. However, once credentials exist on-chain, they remain permanently visible.
Avery emphasized that digital identity systems must balance verification with privacy. He questioned whether self-sovereign identity can truly exist on infrastructure that governments can monitor.
Bhutan has emerged as a crypto-forward nation. The country holds 11,286 Bitcoin valued at $1.31 billion, making it the fifth-largest Bitcoin-holding nation behind the US, China, UK, and Ukraine.
The kingdom acquired its Bitcoin through mining operations powered by hydropower from its Himalayan dams. Bhutan’s Bitcoin balance has declined from roughly 13,000 BTC in late 2024.
Bhutan also holds 656 ETH worth approximately $2.73 million. The country met with former Binance CEO Changpeng Zhao in September.
Bhutan’s planned Special Administrative Region proposed holding Bitcoin and Ethereum as strategic reserves earlier this year. The Tourism Council partnered with Binance Pay to enable crypto payments for hotels and local services.
The country measures national progress through Gross National Happiness rather than traditional economic indicators. This philosophy appears to extend to its embrace of decentralized technology.
The Ethereum-based identity system represents Bhutan’s most ambitious blockchain project. Brazil and Vietnam have implemented partial blockchain identity solutions, but Bhutan is the first to commit to a full population-scale system on a public network.
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