Bhutan’s National Digital Identity (NDI) system is set to transition from the Polygon blockchain to Ethereum by early 2026, aiming to enhance security, performance, and decentralization. The system provides citizens with a digital ID featuring a foundational identity credential, passwordless access, and integrated digital signatures.
Initially launched in 2021 and officially rolled out nationwide in October 2023, NDI already counts over 200,000 users. The first registered “digital citizen” was Crown Prince Gyalsey Jigme Namgyel Wangchuck. Recent upgrades have included additional services such as instant bank account setup.
NDI offers several key functionalities:
- A unified identity credential (Foundational ID) with user-controlled disclosure levels.
- Passwordless authentication for partner services and eKYC verification.
- Regulatory compliance under the NDI Act 2023, clarifying responsibilities of all parties.
- Embedded digital signatures accessible via a mobile application.
The system previously migrated to Polygon in August 2024, but officials indicated the need for a “robust and reliable network” to scale further. Ethereum was chosen for its proven decentralization and resilience, significantly strengthening the platform against potential cyberattacks while ensuring system stability.
“While Polygon served us well, moving to Ethereum enhances both security and reliability. Ethereum’s decentralized architecture makes the system nearly impervious to hacks, ensuring citizens’ digital identities remain safe,” said Jigme Tenzing, Secretary at Bhutan’s GovTech Agency.
Druk Holding and Investments, involved in the NDI development, highlighted that the Ethereum migration will attract active contributors from the Ethereum community to Bhutan. The Ethereum Foundation expressed support for the initiative, with President Aya Miyaguchi and co-founder Vitalik Buterin attending the ceremonial launch on October 13, 2025.
Bhutan becomes the first country to operate a national digital ID system on Ethereum. The migration is expected to complete by early 2026. The country continues to explore blockchain and cryptocurrency initiatives, including integrating crypto payments in tourism sites in partnership with Binance, announced in June 2025.
