Bhutan's Digital Identity System Migrates from Polygon to Ethereum
Date: 2025-10-14 Author: Oliver Abernathy Categories: IN WORLD
Bhutan's National Digital Identity (NDI) system will migrate from the Polygon blockchain to Ethereum by early 2026. This decision was made to improve the project's security, resilience, and performance, according to the country's state broadcaster.
The NDI program was unveiled in 2021 and officially launched in October 2023. Crown Prince Gyalsey Jigme Namgyel Wangchuck was the first recipient of the digital ID. As of March 2025, the system had over 200,000 users and included additional features, such as the ability to open a bank account directly through the platform.
NDI provides citizens with a universal identity document, the Foundational ID, where the degree of data disclosure is completely controlled by the user. The system also supports passwordless login to various services and automatic eKYC verification. A key part of the project is the NDI Act 2023 legal framework, which regulates the responsibilities of all participants, as well as a built-in digital signature accessible through a mobile app. Project partners include Bank of Bhutan (mBOB), TashiCell, and other large organizations.
The system is built according to international W3C standards (DID/Verifiable Credentials). In August 2024, the project was migrated to Polygon, but developers from Druk Holding and Investments concluded that a more powerful and secure blockchain was needed for scalability and increased stability.
According to Jigme Tenzing, Secretary of the GovTech Agency, Ethereum was chosen due to its exceptional decentralization and resistance to hacking. He emphasized that the transition will significantly strengthen trust in digital IDs and make their use even more secure.
Druk Holding and Investments also noted that Ethereum integration will attract new developers and enthusiasts from the global crypto community to the country. The Ethereum Foundation, for its part, expressed its full support for the project. Foundation President Aya Miyaguchi and Ethereum co-founder Vitalik Buterin personally attended the transition ceremony, which took place on October 13, 2025.
Miyaguchi noted that Bhutan became the first country to implement a national digital identity system based on Ethereum. The migration process is scheduled to be completed in early 2026.
Furthermore, the country is actively developing other areas in the blockchain and cryptocurrency space. For example, in June 2025, authorities announced the launch of a cryptocurrency payment system in tourist areas through a partnership with Binance, marking another step toward the digital transformation of the economy.
