Bhutan has begun relocating its citizens Digital ID system on the Ethereum blockchain, a move that its government and partners describe as the first of its kind in a country of this size.
According to government and blockchain sources, the move aims to pin identity certificates on a public chain while keeping private personal data off the ledger.
What transformation entails
based on ReportsThe National Digital Identity (NDI) platform will serve approximately 800,000 people, and the full credential migration is expected to be completed by the first quarter of 2026.
Officials say the change follows previous updates to the platform and is intended to enhance how identity claims are verified across services.
The government previously moved its self-sovereign identity system from Hyperledger Indy to Polygon in 2024, a move made to improve scalability and performance ahead of the recent integration with Ethereum. This early migration is part of the technical background that now guides the current switch.
1/ Bhutan is celebrating a historic milestone today, as it became the first country to install its national digital identity system on Ethereum.
@VitalikButerin I was honored to join the launch event on behalf of the Ethereum community, under the patronage of His Royal Highness. pic.twitter.com/KA4tOYbsJ4
– Miyaguchi English (@Anlyamiyagotchi) October 13, 2025
Ceremony and leaders
Reports revealed that the launch event attracted high-ranking figures from Ethereum Society and leadership in Bhutan.
Co-founders and representatives of the foundation were present at the announcement, and local officials described the day as a milestone in the country’s plans for Digital services.
Technically, the government and its technology partners say the system will avoid putting private identity data directly on-chain.
Instead, cryptographic or hash evidence will be used to confirm identity claims while personal records remain stored off-chain under government control.
This approach aims to strike a balance between verification and privacy protection, according to public statements from project leaders.
What does this mean for citizens?
For many users, the change must be invisible day to day. Verifiers – banks, agencies and service providers – will be able to verify credentials against public evidence without receiving initial personal data.
This is how administrators describe the model in clear terms: keys and evidence in a public ledger, and private data kept elsewhere under legal rules and fences.
However, practical questions remain. How will the government handle the costs associated with public chain transactions? What apps or wallets will citizens use? How will the system work in remote areas with limited internet?
These are the types of operational issues the NDI team said it would address as the migration toward the first quarter 2026 goal continues.
Global context and caution
Experts say Bhutan’s move is notable because national ID systems typically operate on closed networks or licensed ledgers.
Pinning proofs on a widely used public chain like Ethereum is not widely common. Observers praise the potential for transparency, but also warn of the long-term costs, governance, and the need for clear legal protections for citizens’ data.
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