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Bhutan has officially launched the world’s first national digital identity (NDI) system built on the Ethereum network. The move marks a historic step toward digital governance, as the Himalayan nation transitions all authentication data to Ethereum by early 2026. King Jigme Khesar Namgyel Wangchuck, Prime Minister Lyonchen Tshering Tobgay, and Ethereum co-founder Vitalik Buterin attended the launch ceremony.
The Ethereum version of NDI is operating. The government notes that the authentication information of all citizens will be relayed to Ethereum next year. The project is in line with the national vision of Bhutan, which has an inclusive and digitally empowered society.
Prime Minister Tshering Tobgay stated that this system will enable its citizens to have access to and control their information. It will establish a universal system of identity wherein the users are at liberty or otherwise to reveal personal information. The change will ensure that identity verification is carried out without exposing sensitive information, thereby enhancing privacy and building trust in service provision.
The Executive Director of the Ethereum Foundation, Aya Miyaguchi, attended the ceremony. She called the launch a digital transformation breakthrough in the world. Vitalik Buterin praised Bhutan’s efforts, calling their work a positive step toward a more open and secure digital future.
Bhutan’s identity system had previously used Polygon and Hyperledger Indy. The decision to migrate to Ethereum reflects a need for greater transparency, security, and immutability. The government expects the migration to finish by the first quarter of 2026.
Once completed, citizens will authenticate themselves using cryptographic proof rather than traditional ID cards. This will make Bhutan the first country to provide a fully self-sovereign identity (SSI) system to its entire population. The move also reduces the risk of data breaches since personal information remains under user control.
The transition marks a strategic advancement for Bhutan’s digital infrastructure. The Ethereum network’s open architecture supports the government’s goal of enhancing interoperability across systems. It also allows for integration with other blockchain-based public services in the future.
The implementation of Ethereum in Bhutan is a trend being promoted in the quest to adopt blockchain technology in development. The country has already spent a lot on mining Bitcoin, whereby it is using its hydropower to power large mining facilities.
The total value of Bitcoin in Bhutan is 11,286, worth an estimated $1.31 billion by 2025. This makes it the fifth-largest country with Bitcoin, after the United States, China, the United Kingdom, and Ukraine. The mining industry enriches the financial resources of Bhutan and promotes the digital economy plan.
By incorporating Ethereum as an identity management system and Bitcoin as a financial development platform, Bhutan can be considered a pioneer in terms of blockchain usage. The NDI project could become a model for countries seeking safe and privacy-oriented digital identification.
Would the success of Bhutan in implementing Ethereum give a global push to blockchain-based national identity systems?
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Bhutan’s integration of Ethereum into its National Digital Identity system marks a groundbreaking shift in digital governance. The move creates a self-sovereign framework that empowers citizens to manage their data with greater privacy and control.
