Bhutan Moves National Digital Identity System from Polygon to Ethereum to Strengthen Data Security

• Bhutan is moving its national digital ID system from Polygon to Ethereum for better security and control.
• The full migration to Ethereum will allow citizens to manage and share their digital identity safely.
• Bhutan is among the top five countries holding bitcoin and uses clean energy for its crypto mining efforts.

Bhutan has started moving its National Digital Identity (NDI) system from the Polygon blockchain to Ethereum. The country’s GovTech Agency confirmed the shift as part of its broader digital modernization strategy. Integration with Ethereum is now complete. Full migration of all credentials is expected by the first quarter of 2026.

In August 2024, Polygon was initially deployed as an NDI platform in Bhutan. This platform is based on self-sovereign identity (SSI) technology. It allows residents to store and share online and government services with the help of digital credentials. The upgrade to Ethereum aims to improve security and transparency in how identities are managed.

Ethereum Becomes Base for National Identity

The state of Bhutan has become the first to base its system of digital identity on the Ethereum blockchain entirely. The shift represents a major shift in the management of digital identities at the national level. Ethereum’s decentralized structure and data integrity features were major factors in the decision.

The move was announced at a national event attended by Bhutanese leadership and Ethereum representatives. The GovTech Agency was the one to coordinate the transition with the National Digital Identity team and the local blockchain contributors. The aim is to provide a secure and confidential digital ID system to almost 800,000 citizens.

Focus on Citizen Empowerment Through Blockchain

The NDI platform lets users maintain full control over their identity data. Residents can selectively share their credentials with institutions when needed. Zero-knowledge proofs are also used to advocate privacy on the platform. The concept of digital identity in Bhutan is intended to match the technology with personal rights and national values.

The transition is an indicator of the willingness of Bhutan to deploy emerging technologies in the public services. The blockchain-based model does not use central databases, as is the case with traditional systems that use ID. This minimizes the chances of data theft and identity theft. It also makes sure that data can always be verified and is unalterable.

Broader Crypto Involvement and Bitcoin Holdings

In addition to digital identity, Bhutan is actively involved in the broader crypto space. The nation has accumulated a high amount of bitcoins from government-regulated mines. It already owns over 11,000 BTC, and it is ranked among the five largest nations in the world based on the ownership of bitcoins.

Bhutan uses renewable energy in its mines to mine bitcoin through its hydropower plants. This is in conformity with its environmental objectives as it backs its crypto initiatives. The government has also held talks with global crypto leaders, including a recent meeting with a former major exchange executive. Details of that meeting remain undisclosed.

The enhanced use of blockchain in Bhutan demonstrates a shift in the attitude of countries towards the digital infrastructure. One such example is the Ethereum migration, which is the attempt of the country to embrace secure and transparent technology on a large scale.