The Kingdom of Bhutan has become the first country in the world to migrate its national identity system to the Ethereum blockchain. The move will give nearly 800,000 citizens access to safer and more transparent digital government services.

Migration from Polygon to Ethereum completed, full rollout by 2026

The South Asian nation, known for measuring progress through its Gross National Happiness Index, will use Ethereum to store and verify the digital identities of all citizens. Its self-sovereign identity (SSI) system has officially transitioned from the Polygon blockchain, where it had operated since August 2024. Earlier, Bhutan had experimented with Hyperledger Indy.

According to Ethereum Foundation president Aya Miyaguchi, the technical integration is complete. The migration of all credentials and identities is expected to finish by the end of Q1 2026. Miyaguchi announced the news alongside Vitalik Buterin during a ceremony in the capital, Thimphu, attended by Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk.

“It’s incredibly inspiring to see a nation empowering its citizens through self-sovereign identity technology,” Miyaguchi wrote on X, adding that this marks the world’s first national ID system officially moved to Ethereum.

Blockchain ID as a model for other countries

Using blockchain for national identity systems is seen as one of the most promising applications of the technology. With its immutability, transparency, and zero-knowledge proofs, it provides strong privacy and data protection. Apart from Bhutan, countries like Brazil and Vietnam are also experimenting with blockchain identity, though only partially. The project is a collaboration between National Digital Identity, GovTech, and the broader Bhutanese crypto community.

Bhutan among the world’s largest state bitcoin holders

In recent years, Bhutan has quietly become one of the biggest government players in the crypto space. Leveraging renewable hydropower from the Himalayas, the country has been mining bitcoin and now ranks among the top national holders.

Bhutan currently owns 11,286 BTC worth around USD 1.31 billion, placing it fifth globally. The largest bitcoin holdings belong to the United States (198,012 BTC), followed by China (190,000 BTC), the United Kingdom (61,245 BTC), and Ukraine (46,351 BTC).

A major milestone for blockchain adoption at the state level

Bhutan’s move to Ethereum sends a powerful signal to other nations seeking secure digital identity solutions. By combining decentralization with state governance, it opens the door to more transparent and efficient services without sacrificing privacy.

If successful, Bhutan could become a model for other countries — both developing and technologically advanced — that have yet to embrace similar systems.

Sources:

https://x.com/AyaMiyagotchi/status/1977798764485361966

https://x.com/AyaMiyagotchi/status/1977798767765258691

https://bitbo.io/treasuries/countries/

https://cointelegraph.com/news/bhutan-migrates-ethereum-national-id

https://www.ccn.com/news/crypto/bhutan-top-crypto-nations-full-list-of-countries/