Bhutan’s Digital Leap: Ethereum Secures National Identity in Blockchain Revolution

Himalayan kingdom bets big on blockchain—deploys Ethereum network to protect citizen data from centralized failures.

The Sovereign Solution

While traditional finance grapples with paperwork and privacy breaches, Bhutan cuts through bureaucratic red tape with smart contracts. No more identity theft concerns—just immutable digital footprints secured by decentralized validation.

Finance traditionalists scoff at the move—until they realize sovereign nations now trust code more than their legacy banking systems. The ultimate irony? A mountain kingdom teaching Wall Street about digital security.

In brief

• Bhutan now uses Ethereum to host the digital identities of its 800,000 citizens.
• The system is based on BhutanNDI, a self-sovereign identity technology equipped with zero-knowledge proofs.
• Vitalik Buterin and Aya Miyaguchi attended the inauguration ceremony at the state summit.
• The country holds more than 11,000 bitcoins, thanks to 100% hydropower and clean mining.

Why Bhutan traded Polygon for Ethereum for its digital identity

Bhutan doesn’t do things halfway. In less than two years, it went from Hyperledger Indy to Polygon, then to Ethereum to host its national digital identity system. Now, each citizen — nearly 800,000 people — will have a secure self-sovereign identifier on the blockchain.

This infrastructure is supported by BhutanNDI, a system that allows you to verify your identity online without losing control over your data. This MOVE to Ethereum is no coincidence: it relies on zero-knowledge proofs, a technology that guarantees privacy while offering public verifiability.

At the official ceremony, Vitalik Buterin and Aya Miyaguchi were present alongside the Prime Minister and the Crown Prince. In a telling tweet, Miyaguchi summarized the significance of the moment:

This milestone marks not only a national achievement but also a global step toward a more open and secure digital future in the long term. 

This shift also coincides with Ethereum’s 10th anniversary. For Miyaguchi, it perfectly illustrates the journey made:

This moment felt even more significant as it coincides with Ethereum’s tenth year. A reminder of the path traveled, from ideas to their tangible impact in the real world. 

Crypto sovereignty: when Bhutan charts its path 

Behind the technological shift lies a firmly asserted strategic vision. It is no coincidence that Bhutan now ranks among the five largest state holders of Bitcoin, with 11,286 BTC valued at $1.31 billion. This accumulation has been made possible thanks to clean mining, powered by Himalayan hydropower dams.

That’s not all. The country seems to want to become a laboratory of digital sovereignty. Between responsible energy exploitation, anchoring identities on Ethereum, and the 2025 meeting with Changpeng Zhao, the clues converge.

What to retain in 4 quantified points

• 3 blockchains used for the national identity: Hyperledger Indy → Polygon → Ethereum;
• 2026: expected completion date for the full migration of identifiers;
• 11,286 bitcoins: what Bhutan currently holds, about $1.31 billion;
• 5th worldwide rank: Bhutan’s position among nations holding BTC.

This choice to shift to Ethereum is therefore not just a technical upgrade. It fits into a global positioning logic, where a small state shows that it is possible to take initiative, even without being a superpower.

Bhutan has found in Ethereum a promise consistent with its need for decentralization, verifiability, and privacy respect. By aligning its digital infrastructures with the principles of self-sovereign identity, it places itself at the forefront of a State 3.0 model. Here, technology doesn’t overpower the human: it supports it, with transparency and trust.

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