The National Digital Identity (NDI) is Bhutan's biometric-based digital identification system developed under the Digital Drukyul Flagship Programme. Launched in 2023 and governed by the National Digital Identity Act, the system employs Self-Sovereign Identity principles and blockchain technology to provide citizens with decentralised control over their personal data. Initially built on Hyperledger Indy, the platform has migrated through Polygon to Ethereum, with over 230,000 users enrolled by 2025.
The National Digital Identity (NDI) is the Royal Government of Bhutan's flagship digital identification system, designed to provide every Bhutanese citizen with a secure, verifiable digital identity for accessing government services, financial transactions, and private-sector applications. Developed as a core component of the Digital Drukyul Flagship Programme, Bhutan's overarching national digital transformation initiative, the NDI was officially launched in 2023. It is built on the principles of Self-Sovereign Identity (SSI), which place individuals — rather than governments or corporations — in control of their personal data and digital credentials.[1]
The system was initially developed by Druk Holding and Investments (DHI), Bhutan's sovereign investment arm, before being spun off as a wholly owned DHI subsidiary dedicated to digital identity infrastructure. The NDI collects biometric data — including fingerprints, facial images, and palm scans — from all Bhutanese citizens and Special Residence Card holders aged eight years and above. By 2025, over 70 per cent of the population had completed biometric enrolment, and the platform had registered more than 230,000 active users.[2]
Legal Framework
In 2023, Bhutan achieved a significant milestone when the National Digital Identity Act received Royal Assent, establishing Bhutan as the first sovereign state to implement a comprehensive legislative framework for decentralised digital identity. The Act governs the collection, storage, and use of biometric and personal data within the NDI ecosystem, mandating consent-based data sharing and privacy protections aligned with international standards. The legislation provides legal recognition for digital credentials issued through the NDI, enabling their use in government services, banking, healthcare, and education.[3]
Technology Architecture
The NDI employs Decentralised Identity (DID) technology, in which only the identity holder has the authority to grant permission for sharing their information. The system was initially built on Hyperledger Indy, an open-source distributed ledger purpose-built for decentralised identity. In 2024, the platform migrated to the Polygon blockchain to improve scalability, security, and performance. By 2025, Bhutan began integrating the NDI with the Ethereum open-source blockchain protocol, seeking the broader ecosystem support and interoperability that Ethereum provides.[4]
A key feature of the system is Biometric Liveness Verification, which detects whether the person presenting biometric data is physically present, guarding against spoofing and fraud. The government has also explored additional modalities, including voice biometrics for individuals with visual impairments and enhanced selfie verification for remote authentication.[5]
Applications and Services
The NDI serves as a foundational layer for Bhutan's broader e-governance ambitions. Citizens can use their digital identity to access government services online, verify their identity for financial transactions, sign documents digitally, and authenticate themselves across multiple platforms without repeatedly submitting physical documents. The system has facilitated the issuance of over 90,000 foundational identity documents through digital channels. In October 2024, Bhutan became the first country to bring a national digital identity programme into the Global Acceptance Network, enabling cross-border recognition of Bhutanese digital credentials.[3]
Digital Drukyul Context
The NDI sits within the broader Digital Drukyul Flagship Programme, which encompasses digital infrastructure modernisation across Bhutan's government, economy, and society. Digital Drukyul aims to transform Bhutan into a digitally empowered society by improving connectivity, digitising public services, and building a knowledge-based economy. The programme aligns with the Gross National Happiness philosophy by seeking to ensure that digital transformation enhances wellbeing, equity, and access rather than deepening divides.[6]
Challenges and Outlook
Despite its ambitions, the NDI faces challenges common to digital identity systems in small developing nations. Internet connectivity remains limited in remote mountainous districts, potentially excluding rural populations from the benefits of digital identity. The rapid migration between blockchain platforms — from Hyperledger to Polygon to Ethereum within three years — has raised questions about long-term technological stability. Privacy advocates have also noted the inherent tension between comprehensive biometric collection and the SSI principle of minimal data disclosure. Nonetheless, the NDI has attracted international attention as a model for how small nations can leapfrog legacy identity infrastructure through emerging technologies.[5]
References
- Bhutan's National Digital ID Showcased as SSI Model — Biometric Update
- Nationwide Biometrics Collection for Secure Online Identity — Kuensel Online
- Bhutan Brings First National Digital ID to Global Acceptance Network — Biometric Update
- Bhutan's Digital ID System Shifts to Polygon Blockchain — ID Tech Wire
- Bhutan Begins Migrating Self-Sovereign Digital ID to Ethereum — Biometric Update
- Bhutan Charts a Digital Future with Blockchain and National Digital ID — Biometric Update
Test Your Knowledge
Think you know about this topic? Try a quick quiz!
Help improve this article
Do you have personal knowledge about this topic? Were you there? Your experience matters. BhutanWiki is built by the community, for the community.
Anonymous contributions welcome. No account required.