Bhutan upgrades digital identity wallet, including liveness and P2P chat

Bhutan has rolled out four major upgrades to its National Digital Identity (NDI) wallet with the enhancements aimed at strengthening identity security, improving service delivery and reducing fraud and impersonation risk for digital transactions.

At the heart of the upgrade is biometric liveness verification. This uses face biometrics cross-matched against Bhutan’s national biometric database, which is managed by the Department of Civil Registration and Census (DCRC).

By confirming that a user is physically present during sensitive operations, the system now allows activities such as pension collection, online voting, property transfers and high-value fund transactions to be completed securely from a mobile device.

Privacy is built in as biometric images are not permanently stored and used for one-time authentication only, according to Bhutan NDI in collaboration with the GovTech Agency. Besides biometric liveness verification other new features are in-app One-Time Password (OTP), image-based verifiable credentials, and secure peer-to-peer chat.

To replace vulnerable SMS codes, the NDI wallet now generates one-time passwords directly within the app. This change binds each transaction to the verified wallet holder rather than a phone number, blocking SIM-swap fraud and unauthorized access. The in-app OTP feature also works offline in areas with poor connectivity, serving Bhutan’s rural and border communities.

Users can also carry cryptographically secure, image-based versions of traditional ID cards in their wallets. These digital credentials are accepted for banking, passport applications, event access and licensing, streamlining workflows and eliminating the need for paper documents. The system supports privacy-preserving authentication, where eligibility or access rights can be confirmed without revealing full identity details.

A secure peer-to-peer chat function rounds out the upgrades, offering end-to-end encryption and integration with Bhutan’s national digital infrastructure. Users can communicate directly with government agencies, banks and businesses through the NDI wallet, reducing reliance on unregulated third-party apps and keeping data within national servers.

“These capabilities are a crucial step toward realizing our vision of a technologically advanced Bhutan,” said Jigme Tenzing, Secretary of the GovTech Agency.

Jacques von Benecke, CEO of Bhutan NDI, pointed to certain core ideals that guided the design philosophy. “We’ve built these features with privacy, scalability, and user trust at the core,” he said.

“Leveraging the national biometric database, cryptographic protocols, and secure digital wallet architecture. It’s a leap forward for both our technology and our nation.”

Bhutan is ahead of the curve in creating a decentralized system that gives individuals ownership over their personal data and enables consent-based sharing of credentials without dependency on paper documents or external databases. It’s driving the decentralization trend as it hosts hackathons to extend the potential benefits of its digital ID system.

With more than 337,000 users already registered on the NDI app, officials expect uptake to climb steadily as mobile public services expand their reach and functionality. Users should update their NDI wallets via the Apple App Store or Google Play to access the new features.

Since joining the Global Acceptance Network in 2024, Bhutan’s NDI model has drawn international attention for its user-controlled approach. But officials acknowledge that smartphone access and digital literacy remain obstacles in remote areas.

To address these gaps, the government has trained village coordinators, partnered with Bhutan Post and optimized the app for offline use and minimal data consumption. The GovTech Agency has also run awareness campaigns targeting older citizens, teaching this group how to download the app and use it.

Looking ahead, planned enhancements include digital taxation, land registry integration, travel documentation, multilingual interfaces and voice-based authentication. Officials project that expanding digital service delivery could cut administrative burdens by up to 60 percent over the next three years, while curbing fraud, corruption and resource leakage.

Article Topics

Bhutan  |  Bhutan NDI  |  biometric liveness detection  |  civil registration  |  digital government  |  digital wallets