Bhutan has made a significant move towards modernizing its national digital identity system, transitioning from Polygon to the Ethereum blockchain. The project, supported by the government and the Ethereum Foundation, will impact approximately 800,000 residents. This shift signifies Bhutan’s commitment to enhancing digital governance infrastructure, with potential implications for Ethereum’s credibility and transaction volume while reflecting broader blockchain adoption trends globally.
The migration leverages expertise from key figures like Jigme Tenzing of the GovTech Agency and Prime Minister Tshering Tobgay, working alongside the Ethereum Foundation. The process is anticipated to be completed by the first quarter of 2026, with all credentials set to transition at that time.
This move strengthens Ethereum’s standing as a trusted public blockchain for identity infrastructure. It challenges Polygon’s dominance in this space while potentially boosting ETH’s legitimacy and transaction volume through efficient on-chain interactions. The initiative also exemplifies Bhutan’s progress from Hyperledger Indy and Polygon, aligning with global trends where nations like Brazil and Vietnam are exploring blockchain-based identity solutions.
While the project’s financial impact remains unclear, institutional backing is a significant signal for the country’s commitment to digital governance. However, immediate insights into the effect on MATIC token flow remain elusive.
In conclusion, Bhutan’s initiative highlights the growing adoption of blockchain technology in national identity systems and potentially paves the way for similar projects worldwide.