What happened?
Bhutan is moving its national digital identity system from Polygon to Ethereum, with the migration expected to finish by Q1 2026. The upgrade lets nearly 800,000 citizens verify credentials and sign documents on a public blockchain, and officials say the integration is already operational. Ethereum leaders including Aya Miyaguchi and Vitalik Buterin joined Bhutanese officials at the launch, making this the first national ID anchored on Ethereum.
Who does this affect?
Almost 800,000 Bhutanese citizens will gain access to verifiable, self-sovereign digital IDs on Ethereum. The government, local technology partners, and identity-platform providers will need to adapt to a public, decentralized infrastructure instead of private chains. Other countries, blockchain developers, and identity service vendors will be watching closely to see how the rollout performs.
Why does this matter?
This is a real-world endorsement of Ethereum’s security and decentralization, which can increase confidence among businesses and governments considering public blockchains. It could drive demand for Ethereum-based identity infrastructure, tools, and on-chain services, supporting broader ETH usage. Coupled with Bhutan’s crypto moves like staking Bitcoin and holding a large BTC treasury, the step highlights growing sovereign crypto adoption that may influence institutional allocations and market sentiment.