The small Himalayan kingdom of Bhutan has once again captured the attention of the global technology community. Reports indicate that Bhutan is migrating its National Digital Identity (NDI) system from the Polygon blockchain to Ethereum, making it one of the first countries in the world to adopt Ethereum as the primary infrastructure for its citizens’ digital identity.

Background and Reasons Behind the Migration

Bhutan’s NDI system was initially launched using Hyperledger Indy before being moved to Polygon in August 2024. Now, the government — through GovTech Bhutan — has confirmed plans for a full migration to Ethereum, which is scheduled for completion in the first quarter of 2026.

This transition is expected to enhance security, transparency, and national data sovereignty. Ethereum is regarded as a more decentralized network, with a mature public ecosystem and a proven track record as one of the most stable blockchain infrastructures in existence.

Scale and Impact of the Migration

The migration will affect more than 800,000 Bhutanese citizens who rely on digital identities to access various public services.
The NDI system is built on cryptography-based verifiable credentials, meaning it does not store personal data directly on the blockchain. Instead, it records only encrypted hashes or pointers that verify authenticity without compromising user privacy.

Through this approach, citizens will be able to use their digital identities to:

• Access government and banking services,

• Verify telecommunications ownership (SIM cards),

• Digitally sign official documents,

Aya Miyaguchi, President of the Ethereum Foundation, described Bhutan’s move as “the world’s first historic milestone in the implementation of sovereign digital identity.” She emphasized that this system empowers citizens with full control over their own digital identities.

Challenges and Considerations

Despite its revolutionary potential, the migration poses several major challenges, including:

• Private key management, ensuring citizens do not lose access to their digital identities.

• Connectivity and device accessibility in remote regions to guarantee equitable access to the system.

• Legal and data protection frameworks that must align with international privacy standards.

• Public education on data security, digital wallet usage, and decentralized identity management.

A Pioneering Step in National Digital Infrastructure

According to reports from Digital Watch Observatory and Etherworld, Bhutan’s migration to Ethereum is not merely conceptual, the integration process officially began on October 13, 2025, with completion targeted for early 2026.

This marks a major transformation in the country’s digital infrastructure and reinforces Bhutan’s position as a pioneer in national-level blockchain adoption for digital identity. With the successful implementation of this initiative, Bhutan is poised to usher in a new era of digital sovereignty, where citizens hold full control over their identity data in the evolving landscape of Web3.