Bhutan Makes History: 770K Citizens Join Ethereum in World’s First National Blockchain ID

Bhutan Launches National Digital ID on Ethereum, Empowering 770,000 Citizens with Blockchain-Based Identity

In a landmark move that bridges national governance with decentralized technology, the Kingdom of Bhutan officially launched its National Digital Identity (NDI) on the Ethereum blockchain on October 13, 2025. The rollout marks the first time a sovereign nation has integrated its digital identity infrastructure directly with Ethereum, providing over 770,000 citizens with self-sovereign blockchain-based IDs.

The ceremony, held in Bhutan’s capital city Thimphu, featured an impressive lineup of global and national leaders, including Ethereum co-founder Vitalik Buterin, Ethereum Foundation Executive Director Aya Miyaguchi, Prime Minister Tshering Tobgay, and Crown Prince HRH Gyalsey Jigme Namgyel Wangchuck. Together, they celebrated a milestone moment for both the blockchain and governance sectors — an event that may redefine how citizens interact with government systems in the digital age.

Source : BhutanTimes

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A Global Milestone for Self-Sovereign Identity

The Bhutan National Digital Identity initiative aims to put individuals at the center of their data ownership. By leveraging zero-knowledge proofs (ZKPs) and verifiable credentials, the system allows users to verify their identity and eligibility for services — such as healthcare, education, or banking — without revealing sensitive personal information.

This privacy-preserving approach is seen as a breakthrough in digital governance, as it reduces reliance on centralized databases and minimizes risks related to data breaches.

During the launch event, Aya Miyaguchi praised the project, calling it “a historic milestone for privacy and transparency.” She emphasized how Bhutan’s system exemplifies the practical benefits of combining national digital systems with decentralized public networks.

“This isn’t just about technology,” Miyaguchi said. “It’s about giving citizens agency, privacy, and trust in the systems that serve them.”

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From Hyperledger Indy to Ethereum: Bhutan’s Blockchain Journey

Bhutan’s blockchain identity journey began several years ago, starting with Hyperledger Indy as part of early pilot programs. In 2024, the government transitioned portions of the NDI to Polygon, a layer-2 Ethereum scaling solution, to test interoperability and scalability.

Source: X

The 2025 integration into Ethereum mainnet represents the culmination of those pilots — moving Bhutan’s identity verification system into a globally accessible, verifiable, and secure environment.

According to government officials, the migration to Ethereum was chosen for its security, ecosystem maturity, and global developer support. By anchoring citizen identity proofs on Ethereum, Bhutan ensures the verifiability of credentials across borders while maintaining user data privacy.

The transition is expected to be completed by early 2026, after extensive testing, user onboarding, and legal framework finalization.

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How Bhutan’s Blockchain ID Works

Under the new framework, citizens receive verifiable digital credentials tied to their national ID. Instead of storing data on-chain, the system anchors cryptographic hashes on Ethereum, ensuring that no personal data is ever exposed publicly.

Users can share proofs of validity — for example, to confirm they are over 18, have a valid health record, or are enrolled in a university — without disclosing the underlying data. This method, enabled through zero-knowledge proofs, allows for transparent verification while preserving privacy.

“Transparency doesn’t mean exposure,” said a spokesperson for Bhutan’s Digital Governance Council. “Our system gives both — accountability for the state and confidentiality for the individual.”

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Vitalik Buterin: “A Model for Digital Nations of the Future”

Ethereum co-founder Vitalik Buterin praised Bhutan’s integration as a “pioneering experiment in digital trust.” He noted that Bhutan’s use of Ethereum for national identity is not merely symbolic but represents a tangible model for future digital nations.

“What Bhutan is doing today could become a template for countries that want to modernize securely,” Buterin said during his address. “Decentralization offers citizens empowerment, and privacy tools like zero-knowledge proofs ensure freedom with security.”

His comments reflect a growing recognition within the blockchain community that national-level use cases — once considered futuristic — are now achievable through public networks like Ethereum.

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Privacy First, but Challenges Remain

While the system emphasizes privacy, experts warn that user experience, key management, and accessibility remain critical challenges. Losing cryptographic keys could lock citizens out of their digital identities, and older populations may struggle with the transition to digital wallets.

Bhutanese officials acknowledged these risks, announcing plans to roll out training programs and user safeguards during the nationwide migration. The government is also collaborating with academic and legal experts to ensure the framework aligns with international data protection standards and cross-border interoperability.

Importantly, officials confirmed that no sensitive information — such as biometrics or financial data — will ever be stored on Ethereum. Instead, users retain control through encrypted local storage or trusted custodians, ensuring both accessibility and security.

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A Small Kingdom with Global Vision

Bhutan’s blockchain ambitions extend far beyond identity management. Over the past five years, the Himalayan nation has quietly emerged as one of Asia’s most innovative adopters of decentralized technologies.

The NDI project builds on earlier government-backed initiatives involving hydropower-backed crypto mining, blockchain education programs, and public-private partnerships in fintech innovation.

Observers believe Bhutan’s small size — roughly 770,000 residents — has allowed it to experiment with agility, serving as a potential sandbox for digital governance.

“If Bhutan succeeds, it could serve as a playbook for other nations,” said tech policy analyst Raymond Chu. “The country’s combination of strong privacy ethics, manageable population scale, and political will makes it a powerful test case for blockchain identity worldwide.”

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Implications for Global Digital Identity

The integration of Bhutan’s National Digital Identity with Ethereum is being closely watched by policymakers and developers globally. It demonstrates that public blockchains can serve national-scale applications while maintaining compliance and privacy — a combination once thought impossible.

For developing nations, the Bhutan model offers a low-cost, secure infrastructure for citizen identity, financial inclusion, and cross-border service delivery. For advanced economies, it provides a case study in balancing decentralization with state oversight.

Industry analysts suggest this could spark a new wave of digital ID pilots in regions like Southeast Asia, Africa, and the Middle East, where governments are exploring blockchain-backed e-governance systems.

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Looking Ahead: The Future of Digital Trust

As Bhutan transitions into this new era, the country stands as a symbol of what’s possible when technology and governance align with citizen empowerment at the core.

With verifiable credentials, zero-knowledge proofs, and Ethereum’s public infrastructure, Bhutan’s citizens are not just participants — they are the owners of their identities.

“This is not about technology alone,” said Prime Minister Tshering Tobgay during the closing remarks. “It’s about trust, empowerment, and our people’s right to control their digital futures.”

Bhutan’s Ethereum-based identity system may be small in scale compared to global powers, but its impact on the future of digital trust could be enormous.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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