Bhutan charts a digital future with blockchain, bitcoin, and national digital ID

The Kingdom of Bhutan is leveraging digital assets and strategic investments to propel its national development agenda, integrating blockchain technology and sustainable economic planning.

The Kingdom’s digital transformation has been, for the most part, shaped by the approach of Druk Holding and Investments (DHI), the country’s sovereign wealth fund.

Operating a few years ahead of government initiatives, DHI has laid the groundwork for Bhutan’s digital governance by creating foundational capacities that the government is now integrating into its plans.

One of Bhutan’s most notable digital government efforts is the National Digital Identity (NDI) platform, a decentralized national identity system program that is now part of the Global Acceptance Network. Initially developed by DHI, NDI was spun off as a 100 percent DHI-owned startup and has become a cornerstone of Bhutan’s public service modernization, according to reports from GovInsider.

Another achievement by DHI is the national carbon registry, which leverages AI and blockchain technologies. The registry is set to enable Bhutan to trade carbon credits on global markets.

Additionally, DHI has supported the creation of the Bhutanverse, a metaverse platform that brings together local talent to contribute to a virtual ecosystem.

National digital strategy

This all feeds into the country’s 13th five year plan, put together by the Royal Government of Bhutan and supported by the United Nations Development Programme (UNDP), that will see the implementation of a digital development and transformation strategy that focuses on bettering governance, service delivery and private sector growth.

Put simply, the plan includes further integration of NDI into public service delivery, in a bid to deliver on its potential to improve governance and citizen access to services.

According to the UNDP’s strategy paper, the government is prioritizing digital ID systems, expanding broadband connectivity, and fostering digital literacy across rural and urban areas. These initiatives aim to reduce inequalities, create new economic opportunities, and empower marginalized communities, ensuring that Bhutanese citizens can fully participate in the country’s digital economy.

As Bhutan prepares for the nationwide implementation of the NDI, the UNDP urges for the rapid expansion of mobile connectivity in order to solidify its success.

Blockchain for sovereign wealth

In line with the Kingdom’s blockchain efforts, analysis by blockchain intelligence firm Arkham Intelligence has revealed that Bhutan ranks as the fourth-largest government holder of Bitcoin globally. The Kingdom holds 13,000 BTC, valued at $750 million.

The Bitcoin holdings are managed by DHI, which has quietly positioned the small Himalayan kingdom ahead of well-known crypto adopters such as El Salvador.

In 2021, Bhutan entered partnerships with blockchain firms like Ripple and Bitdeer to explore the potential of digital assets. These collaborations aim to develop Bhutan’s Central Bank Digital Currency (CBDC) and enhance digital payments infrastructure.

Ripple is assisting the Royal Monetary Authority of Bhutan in piloting its CBDC, which is envisioned to support financial inclusion by enabling accessible payment systems. Concurrently, Bitdeer is collaborating with the government to scale its cryptocurrency mining operations.

Article Topics

Bhutan  |  Bhutan NDI  |  biometrics  |  blockchain  |  cryptocurrency  |  digital ID  |  Druk Holding  |  national ID