The transition, already underway, will allow nearly 800,000 citizens to manage and verify their identities through a decentralized system. Officials expect all records to be fully migrated by the first quarter of 2026, marking the end of Bhutan’s multi-year experiment in self-sovereign identity.
From Pilot Projects to a Global First
What began as a blockchain trial on Hyperledger Indy later moved to Polygon in 2024. Now, Bhutan has chosen Ethereum as the backbone for its national infrastructure – a decision that reflects both its confidence in the network’s security and its long-term vision for digital self-determination.
The integration was unveiled at a high-profile ceremony attended by Prime Minister Tshering Tobgay, Crown Prince Jigme Namgyel Wangchuk, Ethereum’s Vitalik Buterin, and Ethereum Foundation President Aya Miyaguchi. Miyaguchi described Bhutan’s move as “a milestone for open, citizen-led identity,” calling it a model for other nations exploring decentralized systems.
Why Ethereum?
Bhutan’s government aims to give citizens complete ownership of their data while maintaining privacy using zero-knowledge proofs – a cryptographic method that verifies information without revealing it. This approach, long discussed in blockchain circles, is now being implemented on a national scale for the first time.
A Country Quietly Building Its Crypto Legacy
Bhutan’s embrace of blockchain is not new. Beyond identity, the nation has been mining Bitcoin for years using its hydropower resources, quietly amassing 11,286 BTC, worth around $1.3 billion, according to BitBo data. That stash makes Bhutan the fifth-largest state Bitcoin holder globally, behind the U.S., China, the U.K., and Ukraine.
In recent months, Bhutan has also hinted at expanding its crypto collaborations. Sources familiar with the matter say the country’s leadership met with former Binance CEO Changpeng Zhao to discuss potential digital finance initiatives – though no details have been disclosed.
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