Nikolas Sargeant
The Kingdom of Bhutan is transitioning its national digital identity system to the Ethereum blockchain, marking a significant advancement in the country's adoption of decentralized technology. The migration, which affects nearly 800,000 residents, will enable citizens to verify their identities and access government services through a self-sovereign ID system built on Ethereum's infrastructure. Ethereum Foundation President Aya Miyaguchi and co-founder Vitalik Buterin attended the launch ceremony alongside Bhutan's Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk.
The integration with Ethereum has been completed, though the full migration of all resident credentials is expected to finish by the first quarter of 2026. Miyaguchi described the implementation as a world-first and called it inspiring to see a nation empower its citizens with self-sovereign identity. The shift represents a global step toward a more open and secure digital future, leveraging blockchain's immutability, transparency, and privacy features.
This marks Bhutan's third blockchain platform for its national ID system. The country previously operated on Polygon starting in August 2024 and used Hyperledger Indy before that. Bhutan joins a small group of nations, including Brazil and Vietnam, that have integrated blockchain-based identity solutions into their government infrastructure. The migration demonstrates the practical application of blockchain technology in public administration.
Beyond digital identity, Bhutan has emerged as a surprising leader in cryptocurrency adoption. The Himalayan nation is currently the fifth-largest Bitcoin-holding country globally, with 11,286 Bitcoin worth approximately $1.31 billion, accumulated through mining operations powered by renewable hydropower energy. The country has also been exploring additional crypto initiatives, including recent meetings with former Binance CEO Changpeng Zhao, though specific details of those discussions remain undisclosed.
Bhutan has also revolutionized its tourism sector through cryptocurrency integration, launching a partnership with Binance Pay and DK Bank that allows visitors to use digital assets throughout their entire journey. More than 100 Bhutanese merchants now accept cryptocurrency payments through QR code technology, enabling tourists to pay for everything from airfare and visa fees to hotel accommodations and local handicrafts using over 100 different cryptocurrencies. This system not only addresses challenges like high transaction fees and limited card acceptance in remote areas but also empowers small-scale entrepreneurs and rural artisans by bringing them into the digital payment ecosystem, furthering Bhutan's commitment to sustainable development and economic inclusion.
