From Polygon to Ethereum: Bhutan’s Bold Blockchain Migration Puts 800,000 Citizens on Web3 Rails

Bhutan is moving its national self-sovereign identity (SSI) framework from Layer 2 solution Polygon to Ethereum.

This decision will allow its population of roughly 800,000 to authenticate identities and interact with government platforms via Ethereum’s blockchain.

Ethereum for National ID

In the latest post on X, Aya Miyaguchi, President of the Ethereum Foundation, revealed that the integration has been completed, while all resident credentials are set to be migrated by the first quarter of 2026. The announcement was made at a high-profile event featuring Ethereum co-founder Vitalik Buterin, Prime Minister Tshering Tobgay, and Crown Prince Jigme Namgyel Wangchuk.

Blockchain-powered national ID systems are increasingly being recognized for their potential to enhance transparency and security, particularly with zero-knowledge (zk) proofs enabling privacy protection.

Bhutan’s digital ID journey began on Hyperledger Indy before it moved to Polygon in August 2024. Now, by adopting Ethereum, the South Asian country aims to strengthen trust in its digital governance infrastructure. Other nations like Brazil and Vietnam have also experimented with similar blockchain-based identity initiatives.

Miyaguchi stated that Bhutan’s National Digital Identity and GovTech departments were key in driving the Ethereum integration, supported by members of the country’s growing crypto community and technical contributors who helped in the transition.

Royal Crypto Ambitions

Beyond integrating blockchain into its digital economy, Bhutan has actively mined bitcoin in recent years to strengthen its crypto holdings. Currently, the kingdom owns 6,371 BTC, which makes it the sixth-largest government BTC holder in the world, following the US, China, the UK, Ukraine, and the UAE, according to data compiled by BitcoinTreasuries.

Earlier this year, Bhutan partnered with Bitdeer Technologies to raise $500 million to expand its Bitcoin mining operations. The fund planned to support a 100-megawatt hydro-powered mining facility. Druk Holding & Investments, which happens to be the Bhutan government’s investment arm, will also invest and target institutional investors.

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