Press Release: GovTech Agency Bhutan and Druk Holding & Investments Announce Nationwide Launch of National Digital Identity

Thimphu, October 13, 2023 – Bhutan today marks a historic moment in its digital transformation journey with the nationwide launch of the Bhutan National Digital Identity (NDI). The NDI is a cornerstone of the nation's digital economy, ushering in an era of fast, secure, and trusted interactions between individuals and service providers. The NDI will give all Bhutanese citizens equal access to government, commercial, and banking services.

This achievement follows the inauguration of the National Digital Identity (NDI) project earlier this year when His Royal Highness Crown Prince Jigme Namgyel Wangchuck became the first digital citizen of Bhutan on February 21, 2023.

The National Digital Identity Project was initiated by Royal Command and forms the foundation of Bhutan’s national digital transformation strategy, the Digital Drukyul Flagship Program, which will enable an inclusive and connected tech service ecosystem across the Kingdom. The Bhutan NDI project is led by the Government Technology (GovTech) Agency in close cooperation with Druk Holding & Investments (DHI), the commercial arm of the Royal Government of Bhutan.

The purpose of the NDI is threefold:

1. Give Bhutanese citizens a cutting-edge system to seamlessly, safely, and conveniently access government and commercial services. 2. Future-proof national digital infrastructure by creating a long-term, resilient digital identification model. 3. Inspire a connected tech service ecosystem that reaches all Bhutanese from remote rural communities to urban centers, ensuring equitable access to services.

Highlighting the significance of the launch, Jigme Tenzing, Acting Secretary at GovTech Agency Bhutan said, “The launch of Bhutan NDI marks a critical step in our journey to become a digital nation – a nation that not only leverages technologies to transform services but also empowers citizens with ownership of their personal data.”

The system was designed and developed on the principles of self-sovereign identity (SSI), leveraging Decentralized Identity (DID) technology. Only the identity holder can give permission to share their information with a requesting body – not even the government has access to individual records. As such, Bhutan NDI provides individuals greater control over their personal information. All data is securely stored in individual biometric-enabled personal edge wallets, eliminating third-party or cloud-based hosting, thus preserving privacy, security, and consent as fundamental principles.

Bhutan NDI's mobile wallet is compatible with both iOS and Android devices, facilitating digital interactions between individual users, government authorities, service providers, and business enterprises. At the core, Bhutan NDI represents a trust service between actors in Bhutan’s digital ecosystem by offering the highest level of assurance that all information shared across online services and platforms are authentic and verified.

Ujjwal D. Dahal, CEO of Druk Holding and Investments said, “The launch of Bhutan NDI represents a pivotal moment in the Kingdom’s digital transformation journey, underlining its commitment to developing a privacy preserving digital ecosystem. Bhutan NDI is built on an SSI framework which leverages blockchain technology to provide highly secure digital identity services on the internet. We believe the solution unlocks potentially innovative business verticals and look forward to seeing how the next generation of entrepreneurs and problem solvers leverage the technology to help solve the global challenges of the 21st century.”

The NDI platform design was guided by the following objectives:

● Establish verified identity as the cornerstone of every digital interaction.

● Foster a harmonious digital ecosystem for seamless government and business service delivery.

● Provide verification and authentication services to meet compliance requirements for service providers and individuals.

● Innovate to meet the needs of the evolving digital transaction landscape.

Bhutan reached a significant milestone in July, when Royal assent was granted for the National Digital Identity Act, establishing Bhutan as the first sovereign state to implement a comprehensive decentralized digital identity framework. The NDI Act confers legal recognition to digital credentials issued through the Bhutan NDI wallet, NDI platform, and NDI services, thereby facilitating cross-sector digital transactions. This landmark legislation enhances existing laws, rules, and regulations by integrating digital transactions into their enforcement.

Jacques Von Benecke, Chief Technology Officer at Druk Holding and Investments explained, “The National Digital Identity Act represents a critical foundation for Bhutan’s digital transformation, fostering a service-oriented economy poised to seize the opportunities presented by Web3. Bhutan is steadfast in its commitment to accelerating responsible Web3 technology development and adoption, underpinned by regulations that safeguard privacy via innovative identity verification methods rooted in the principles of zero knowledge proof."

The NDI will be a point of pride for all Bhutanese. The system will drive inclusion across all Bhutanese urban and remote communities and inspire a commercial ecosystem of businesses creating new and innovative use cases for the digital ID. The NDI will also ease market access to Bhutan for global companies by facilitating seamless citizen-service provider interactions. In addition, as governments across the world move towards digitization and digital ID systems, the NDI is a globally unique model that can be exported to other countries and territories.

About GovTech Agency, Bhutan GovTech, established under the Royal Government of Bhutan, is mandated to create and promote an enabling environment for the vibrant growth of the technology sector. The Royal Government of Bhutan has prioritized ICT to achieve its vision of becoming a digital Bhutan. It is making concerted efforts to leverage technologies for the country’s digital transformation.

About Druk Holding & Investments Ltd. Druk Holding & Investments, the commercial arm and trusted steward of the Royal Government of Bhutan, was established in 2007 to hold and manage the existing and future investments of the Royal Government for the long-term benefit of the people of Bhutan. As the largest and only government-owned holding company in Bhutan, DHI holds shares of 21 different domestic companies operating in the manufacturing, energy, natural resources, financial, communication, aviation, trading and real estate sectors.

DHI’s wider portfolio contains investments across a range of asset classes that deliver exposure to traditional sectors and the industries driving the modern economy. This includes global equities, fixed income and venture capital investments in promising startups; domestic and international real estate; renewable energy including hydropower generation; healthtech, biotech, life sciences and agritech; and digital asset mining and investment.

DHI’s future-facing investment strategy is helping to build a more connected and sustainable Bhutan by deepening local knowledge of and engagement in the technology landscape. At the same time, it fosters relevant human capital for industries of the future, creating jobs and preparing citizens to participate in the modern global economy from within Bhutan.

To learn more, visit www.bhutanndi.com

Media inquiries:

GovTech: ljamtsho@tech.gov.bt

Druk Holding & Investments: dhi@dhi.bt