Bhutan to Migrate National Identity System to Ethereum Blockchain: A Global First

Bhutan, the Himalayan nation with a population of approximately 800,000, is on the brink of a historic transformation. In a groundbreaking move, the country is set to migrate its entire national identity system to the Ethereum blockchain. This initiative positions Bhutan as the first country in the world to consolidate citizen identity records exclusively on Ethereum, marking a significant milestone in blockchain technology adoption.

The announcement, made during an official launch event on October 13, was spearheaded by Aya Miyaguchi, Executive Director of the Ethereum Foundation. The event also featured Ethereum co-founder Vitalik Buterin, Bhutan's Prime Minister Lotay Tshering, and Crown Prince Jigme Namgyel Wangchuck.

Miyaguchi highlighted the monumental nature of the project, stating, "This undertaking represents the world’s first national-scale self-sovereign identity system based on Ethereum. It is a global milestone toward a more open and secure digital future."

Transition to Ethereum: A Leap in Transparency, Privacy, and Security

Bhutan's adoption of Ethereum represents the evolution of its national identity system. Previously, the country utilized the Polygon network for digital identity management starting in August 2022, after having first experimented with the Hyperledger Indy framework. The decision to transition to Ethereum stems from its superior characteristics, particularly its transparency, immutability, and stringent privacy protections.

The migration is scheduled to be completed by the first quarter of next year, with digital identity credentials for all Bhutanese citizens being transferred to the Ethereum blockchain. These blockchain-enabled IDs will serve as a robust foundation, allowing citizens to access government services seamlessly, authenticate medical records, and utilize other critical applications.

In a social media post on X (formerly Twitter), Miyaguchi called the initiative “deeply inspiring,” emphasizing the global importance of Bhutan’s commitment to providing its citizens self-sovereign identities. She also hailed this move as "a global leap toward a more open and secure digital future."

Bhutan’s Pioneering Role in Digital Asset Adoption

Bhutan’s integration of Ethereum technology into its national infrastructure is the latest step in its bold leadership in digital asset adoption. The country has already gained global recognition for its innovative approach to digital currencies and blockchain technologies.

Notably, Bhutan has been actively involved in cryptocurrency mining operations, leveraging its abundant hydropower resources as a sustainable energy source. The nation currently holds 11,286 Bitcoin (BTC), a staggering $1.31 billion in value (₩1.845 trillion), placing it as the fifth-largest sovereign holder of Bitcoin, following the United States, China, the United Kingdom, and Ukraine.

In addition to its Bitcoin holdings, Bhutanese officials have been engaging with key players in the cryptocurrency world. For example, in late September, they held discussions with Binance’s former CEO Changpeng Zhao, though details of that meeting were not disclosed to the public.

Bhutan’s Vision for a Blockchain-Driven Digital Economy

By becoming the first country to integrate blockchain technology into its national identity framework, Bhutan is making a strong statement about its vision for the future. The transition to Ethereum underscores its ambition to create a secure and transparent digital economy.

Coupled with its strategic use of natural resources for sustainable Bitcoin mining, Bhutan is uniquely positioned to lead the global conversation around blockchain adoption and digital asset innovation. Through this forward-thinking approach, Bhutan is not only modernizing its national systems but also establishing itself as a significant player in the global cryptocurrency and digital technology space.

This bold move sets a precedent for other nations to explore the vast possibilities that blockchain technology brings to the table, paving the way for greater technological integration in governance.