Bhutan Goes Fully On-Chain
Bhutan has officially begun migrating its National Digital Identity (NDI) platform to the Ethereum blockchain, marking a world first in the use of a public network for a national identity system.
The move, announced this week, makes the Himalayan kingdom the first country to host a population-wide ID system on Ethereum - enabling citizens to verify identity details such as age, residency, and citizenship without relying on centralized government databases.
The migration will be completed by early 2026, according to the Ministry of Digital Transformation. Once finalized, Bhutanese citizens will be able to use verifiable credentials directly linked to Ethereum’s validator network.
From Cardano to Ethereum
The NDI platform was originally launched in 2023, built on W3C identity standards and developed in partnership with Input Output Global (IOG) - the company behind Cardano. Bhutan’s Crown Prince Jigme Namgyel Wangchuck became the nation’s first digital citizen, symbolizing its rollout.
Now, with its migration to Ethereum, Bhutan is signaling a strategic pivot toward interoperability and transparency within global blockchain ecosystems.
The shift also aligns with the nation’s broader digital transformation strategy, spearheaded by Druk Holding & Investments (DHI) - Bhutan’s sovereign wealth fund, which manages the kingdom’s growing portfolio of crypto, mining, and blockchain projects.
Innovation or Overexposure?
While many hail Bhutan’s move as revolutionary, others warn it could introduce new privacy risks.
Avery added that once identity credentials exist on-chain, they remain permanently accessible, raising concerns about surveillance and traceability. He urged governments to find a “balance between verification and anonymity” to protect citizens’ digital rights.
Bhutan’s Expanding Blockchain Footprint
This latest integration marks another major milestone in Bhutan’s growing crypto and blockchain ecosystem.
Earlier this year, the kingdom’s proposed Special Administrative Region (SAR) outlined plans to include Bitcoin and Ethereum in its sovereign reserves, aiming to support its digital finance strategy.
In parallel, Bhutan’s Tourism Council partnered with Binance Pay to enable crypto payments for hotels, travel bookings, and local services - part of its effort to brand itself as a crypto-friendly destination.
According to Arkham Intelligence, Bhutan is currently the fifth-largest national Bitcoin holder, with 6,370 BTC worth approximately $725 million, slightly surpassing El Salvador’s holdings. The nation also holds 656 ETH, valued at around $2.7 million.
A Model for Digital Sovereignty
By tying its national identity system to Ethereum, Bhutan is pushing the frontier of state-level blockchain integration. The experiment could serve as a blueprint - or a cautionary tale - for other nations exploring decentralized governance technologies.
Whether this marks the future of digital sovereignty or the limits of public-chain governance, one thing is clear: Bhutan is rewriting the rulebook for how nations can engage with blockchain technology.
