Bhutan's National Digital Identification Enters a New Era
Bhutan’s National Digital Identification (NDI) system is set to migrate from the Polygon blockchain to Ethereum, aiming to enhance security, scalability, and performance, according to the country’s national broadcaster.
The NDI project was first unveiled in 2021, with the national launch taking place in October 2023. During the launch, Crown Prince Gyalsey Jigme Namgyel Wangchuck became Bhutan’s first official “digital citizen.”
By March 2025, over 200,000 users had received their digital identifiers, with the system introducing services such as bank account creation and secure eKYC verification.
Key Benefits of the NDI System
The NDI system offers a variety of user-friendly features:
- A single identity document (Foundational ID) with user-controlled disclosure
- Login- and password-free access to partner services
- Legal protection under the NDI Act 2023
- Embedded digital signature
All these functionalities are accessible through a mobile app, supported by institutions including Bank of Bhutan (mBOB) and TashiCell.
Why Ethereum Was Chosen
Built on W3C standards (DID/Verifiable Credentials), the system migrated to Polygon in August 2024. However, for improved scalability and reliability, Druk Holding and Investments, a company involved in NDI’s development, recommended Ethereum.
“Switching to Ethereum further strengthens the security of our digital identity. Ethereum is one of the most decentralized blockchains globally, making it highly resistant to hacking. This transition ensures both security and stability,” said Jigme Tenzing, Secretary of the GovTech Agency.
The move is also expected to attract active blockchain participants to Bhutan. The Ethereum Foundation, which supports blockchain development, endorsed the initiative. Foundation President Aya Miyaguchi and Ethereum co-founder Vitalik Buterin attended the migration ceremony on October 13, 2025. Bhutan is now the first country to implement a fully Ethereum-based digital identity system. The migration is expected to be completed by early 2026.
Bhutan continues to embrace cryptocurrency and blockchain innovations. In June 2025, authorities announced the integration of cryptocurrency payment options at tourist attractions through a partnership with Binance.
