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Bhutan will migrate its national digital ID system to Ethereum.
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The initiative aims to give citizens full control over identity data.
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Experts warn that onchain IDs may raise privacy and surveillance risks.
Bhutan’s Digital Identity Move
Bhutan has announced plans to move its national digital ID system onto Ethereum, becoming the first country to anchor a live, population-scale identity network on a public blockchain. The migration is set to be completed by early 2026, allowing citizens to verify credentials such as age or citizenship without centralized databases.
Government and Ethereum Collaboration
The project, initially built with Cardano developer IOG, has been redesigned to leverage Ethereum’s validator infrastructure for verification. Ethereum co-founder Vitalik Buterin praised the move, saying it represents “meaningful, positive change through open-source technology.”
Balancing Transparency and Privacy
While the system enhances transparency and interoperability, experts warn it could expose citizens to new privacy risks. Kirill Avery, founder of decentralized identity firm Alien, said putting credentials on a public chain “creates auditability but not necessarily privacy,” emphasizing the need for careful safeguards.
A Growing Blockchain Footprint
Bhutan has already embraced crypto and blockchain integration. The country mines Bitcoin, holds crypto in its reserves, and allows tourists to make payments via Binance Pay. With the Ethereum integration, Bhutan is further positioning itself as a global leader in digital governance and blockchain adoption.
