Bhutan Migrates National ID to Ethereum: A Bold Step Toward Blockchain Governance

Bhutan is making headlines by migrating its National Digital Identity (NDI) system to the Ethereum blockchain. This step reflects a deeper commitment to blockchain infrastructure in the kingdom. The change will allow nearly 800,000 residents to use self-sovereign identity for government services and verification. The full migration of all resident credentials is expected to be complete by early 2026.

This shift is part of Bhutan’s evolving identity system. Earlier, the NDI operated on permissioned ledger technology. In 2024 the system moved to the Polygon blockchain, aiming for better performance and security. The move to Ethereum now signals a readiness for public chain decentralization. Identity credentials will be anchored to Ethereum while sensitive data remains private and off-chain where necessary.

Parallel to identity innovation, Bhutan has quietly built a strong presence in Bitcoin. The country has mined over 13,000 BTC, leveraging its abundant hydropower resources. This has made it one of the largest sovereign holders of Bitcoin. It did not acquire BTC through seizures or external purchases but through state-funded, sustainable mining operations.

Bhutan plans to expand its mining capacity. The investment arm of the government oversees mining facilities and collaborates with international firms to scale operations. Capacity is being increased significantly, aiming to reach hundreds of megawatts of mining powered by renewable energy.

This strategy has another benefit. Profits from Bitcoin mining have already supported government expenses and it offers a potential reserve asset in a changing global financial landscape.

The NDI is not just about moving blockchains. Bhutan has rolled out key upgrades to the identity system to enhance security and user experience. Biometric liveness verification has been added so people must prove they are physically present during certain transactions. One-time passwords now work offline, which helps citizens in remote areas. The identity wallet now supports secure peer-to-peer chat and image-based verifiable credentials instead of relying on vulnerable SMS codes.

Bhutan also established a formal legal foundation by passing legislation for the NDI, providing clear rules for how identity data should be governed, handled, and protected. A CEO has been appointed to lead the NDI initiative under its holding company, giving it stronger institutional standing.

Bhutan’s approach combines identity and crypto in a way few countries have done. By placing its national ID on Ethereum, it is embracing transparency, immutability, and interoperability. It moves from closed or semi-closed systems toward blockchain infrastructure used globally.

Meanwhile, its Bitcoin holdings built through mining show a strategy of leveraging natural resources in an environmentally conscious way. Hydropower enables Bhutan to mine at a lower cost and with less environmental impact.

When identity innovations, crypto mining, and government governance come together, they build trust. They attract more fintech, more partnerships, and position Bhutan as a model for small nations.

What to Watch Next

• Full migration of identity credentials to Ethereum by early 2026.
• New services built on top of the NDI: property registration, voting, government benefit access, etc.
• Growing mining capacity and how profits are used (investment in public services, infrastructure, etc.).
• Regulatory safeguards: how identity data privacy is maintained, how credential revocation works, and what governance models are in place.
• Export potential: whether Bhutan will license or partner to share its digital identity ecosystem with other countries or services.

Bhutan is proving that blockchain is not just hype. Identity and Bitcoin are being integrated into its economic and social infrastructure. Moving its national ID to Ethereum is more than a tech story. It is a signal: small nations can lead with intentional strategy, using blockchain not for speculation but for infrastructure.

Bhutan’s story shows what can happen when governance, trust, and innovation move together. As other countries watch, this Himalayan kingdom may become a standard-bearer for how blockchain can be woven into national systems in a thoughtful, sustainable way.