Bhutan Launches Ethereum National ID, Leverages BTC Reserves and Crypto Payments
Bhutan has begun migrating its national digital identity system to an Ethereum-based platform, aiming to serve 800,000 citizens by Q1 2026. This first full-scale Ethereum national ID solution uses smart contracts to enhance security, privacy and streamline citizen services. Developed in partnership with the Ethereum Foundation and tech providers, the system stores ID credentials on a decentralized network. Concurrently, Bhutan holds over 11,000 BTC (around $1.3 billion) and supports sustainable Bitcoin mining powered by hydropower. The government’s strategy involves selling Bitcoin at market peaks while retaining core reserves. Tourists can now pay with various cryptocurrencies, underscoring Bhutan’s commitment to blockchain adoption and potential as a global model.
Bullish
Government adoption of an Ethereum national ID and expansion of crypto payment options signal rising institutional demand for ETH and BTC. The deployment of Ethereum smart contracts for a sovereign ID system strengthens on-chain activity and network credibility, suggesting increased utility and potential price support for ETH in both short and long term. Bhutan’s strategic Bitcoin holdings and mining operations also reinforce positive sentiment for BTC, though major price moves will depend on broader market conditions.