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Bhutan has been one of the most active countries in terms of crypto activities and regulations. And this time, it is about ensuring that it is not left behind when the world rushes to develop more crypto and blockchain-related infrastructure.
As the South Asian country continues its push for blockchain innovation, Bhutan is switching from Polygon to Ethereum for its National Digital Identity (NDI) system.
What is the new development?
The nation’s state broadcaster, the Bhutan Broadcasting Service, said on Monday that the Ethereum blockchain has been linked to its existing Polygon-based NDI platform. The complete migration is anticipated to occur by the first quarter of 2026.
According to reports, the nation has been utilising the Polygon blockchain for NDI.
Jigme Tenzing, Secretary of the GovTech Agency, stated, “By moving to Ethereum, we are further strengthening the security of our digital identity.”
Bhutan NDI enables its roughly 800,000 citizens to save and exchange digital login credentials for internet services through the use of self-sovereign identification technology.
In August 2024, the NDI project began using Polygon to operate its system.
What do the leaders say?
According to Aya Miyaguchi, president of the Ethereum Foundation, Bhutan is the first country to “anchor its national digital identity system on Ethereum.”
Vitalik Buterin, a co-founder of Ethereum, and Miyaguchi both attended a launch event in Bhutan on Monday.
He said, “When I first visited Bhutan in May 2024, I felt a strong resonance between Bhutan and Ethereum: both believe that visions for the future must be grounded in strong foundational values. It’s deeply inspiring to see a nation commit to empowering its citizens with self-sovereign identity.”
Bhutan and Bitcoin
In recent years, Bhutan, a nation that bases its growth on Gross National Happiness, has subtly emerged as a leader in the use of cryptocurrencies.
It has accumulated its assets via mining with renewable energy at its hydroelectric dams in the Himalayas, making it the fifth-largest nation-state that owns Bitcoin.
According to BitBo’s Bitcoin Treasuries statistics, it presently has 11,286 Bitcoin valued at $1.31 billion, behind only the US, China, the UK, and Ukraine.
Also, Bhutan is making a bold move into the cryptocurrency space with the goal of using digital assets to promote economic resilience and tourism in addition to financial innovation.
Government officials presented a forward-looking plan that places cryptocurrency at the centre of the country’s growth during the “Digital Bhutan” discussion, which was co-hosted by Binance.
Bhutan may also be looking at other cryptocurrency projects after meeting with Changpeng Zhao, the former CEO of Binance, in late September; however, the specifics of their conversation were not made public.
Also Read: Bhutan Partners with Binance Pay to Launch World’s First National Crypto Tourism Payment System