Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Bhutan has announced its intention to fully migrate its National Digital Identity (NDI) platform to Ethereum by early 2026, transitioning from its current Polygon-based system. The move, reported by the Bhutan Broadcasting Service (BBS) on October 13, 2025, aims to enhance the security and stability of the NDI, which provides secure, verifiable credentials to the nation’s more than 727,000 citizens.
Strengthening Digital Identity Infrastructure
Druk Holding and Investments (DHI), the commercial and investment arm of the Royal Government of Bhutan, decided to shift to Ethereum due to its robust blockchain network capabilities. Jigme Tenzing, the Secretary of the GovTech Agency, stated that the transition from Polygon to Ethereum would further strengthen the security and stability of their digital identity system.
Bhutan’s NDI was initially launched nationwide on October 13, 2023, designed around the principles of self-sovereign identity (SSI). This approach empowers individuals with greater control over their digital identity information for various online services and applications.
International Recognition and Development
Ethereum Foundation President Aya Miyaguchi commented on the integration, calling it a “historic milestone” for Bhutan as the first nation to anchor its national digital identity system on Ethereum. Miyaguchi and Ethereum Co-Founder Vitalik Buterin attended the NDI launch ceremony in 2023, where Bhutan’s nine-year-old Crown Prince, Jigme Namgyel Wangchuck, became the nation’s first digital citizen.
Miyaguchi emphasized the significance of a nation committing to empowering citizens with self-sovereign identity, viewing it as a global step toward a more open and secure digital future.
Advancements in the NDI Ecosystem
The organization behind Bhutan’s digital ID program, Bhutan NDI, announced a strategic partnership with U.S.-based digital identity platform provider iDen2 on August 19, 2025. This collaboration aims to launch an end-to-end digital identity solution called “Phenix,” which provides a modular architecture for identity enrollment, verification, authentication, and lifecycle management for governments and enterprises.
Additionally, Bhutan recently introduced advanced value-added features for its NDI wallet, including “Biometric Liveness Verification.” This feature detects if a person in front of a camera is real, enhancing trust in critical digital activities such as high-value transactions, voting, property transfers, and pension disbursements.
Bhutan’s Broader Blockchain Strategy
The Himalayan nation has increasingly embraced blockchain technology to foster innovative solutions and stimulate its economy. On a macroeconomic level, Bhutan is actively involved in state-powered Bitcoin mining, reportedly holding over 12,000 BTC. These activities have led to discussions about establishing a national digital asset reserve, drawing parallels to President Donald Trump’s March executive order on a U.S. Bitcoin reserve.
In January 2025, the Gelephu Mindfulness City (GMC), a planned special economic zone, announced its intention to hold certain high market capitalization and deep liquidity digital assets as part of a strategic reserve. The city also enacted the ‘Application of Laws Act 2024’ in December 2024, recognizing virtual asset service providers (VASPs) and digital assets within its jurisdiction.
On a nationwide scale, Binance Pay partnered with Bhutan’s DK Bank in May 2025, enabling Binance users to pay for goods and services across the country using digital assets. Since the partnership, over 1,000 merchants in Bhutan are now reportedly accepting digital assets for various transactions, from hospitality to taxes.
A Nation Embracing Decentralization
The integration of Bhutan’s NDI with Ethereum underscores the nation’s strategic commitment to leveraging blockchain technology for public services and economic development. This initiative, alongside its broader engagement with digital assets and innovative partnerships, positions Bhutan as a notable player in the global adoption of decentralized technologies.
