Location: Thimphu

Today marks a historic milestone for the Kingdom of Bhutan as the National Digital Identity (NDI) Act received royal assent from His Majesty The King Jigme Khesar Namgyel Wangchuck. As envisioned by His Majesty the King, the NDI Act grants every citizen the fundamental right to privacy and control over their personal data. Passage of the Act makes Bhutan the first sovereign state to implement a comprehensive decentralized digital identity framework, addressing key concerns by empowering its citizens to protect themselves in the digital age.

The NDI Act, which was unanimously passed by both the National Council and the National Assembly during a joint sitting on 7 July 2023, serves as a significant step forward in advancing the nation's digital ecosystem. The Act embodies the following core objectives:

• Empowerment: The Act empowers citizens by providing easy access to essential government and business services, promoting digital inclusion for all.
• Data Privacy: Citizens maintain control over their personal data, selecting which entities they authorize to access their information, thus ensuring privacy and safeguarding sensitive data.
• Data Security: The Act establishes a highly secure National Digital Identity system, leveraging decentralized public key infrastructure to enhance the security and integrity of personal data.
• Inclusivity and Accessibility: The NDI Act promotes inclusivity, accessibility, and equity by catering to individuals with limited digital literacy, financial stability, and special needs.

Under the new legislation, Bhutanese citizens and residents will benefit from streamlined digital transactions, including access to financial and banking services, employment processes, and government-to-citizens services. These services will be made accessible through the Bhutan NDI digital wallet, currently under development by Druk Holding & Investments (DHI), the commercial arm of the Royal Government of Bhutan, for GovTech Bhutan. The wallet encompasses three core capabilities—secure digital signing, seamless digital currency transactions, and verifiable credential storage and exchange.

Jigme Tenzing, Acting Secretary at GovTech Bhutan, explained, “NDI is one of the key pillars to Digital Bhutan as envisioned by His Majesty the King to empower the people of Bhutan. It will not only transform how the government provides services to the people; it will also make the government more efficient and will help improve the business environment and enhance the total productivity of the country.”

Driven by the principles of Self-Sovereign Identity (SSI), Bhutan NDI empowers individuals to take control of their personal data by enabling them to share only the information that is required for a specific transaction or interaction. As all data is stored in an individual biometric-enabled digital wallet (and not hosted by a third party or in the cloud), Bhutan NDI embodies privacy and security at its core.

By leveraging Decentralized Identifiers (DIDs) technology, which utilizes blockchain and cryptographic identifiers, Bhutan NDI establishes a robust infrastructure with reduced single-point-of-failure risk. These DIDs conform to global web standards mandated by the World Wide Web Consortium (w3C) and employ biometric algorithms approved by the National Institute of Standards & Technology (NIST). This makes Bhutan NDI compatible with international protocols and enables it to be used across different platforms, enabling interoperability and portability.

Bhutan NDI will further enhance user security by introducing a Revocation Service, allowing the management of the status of verifiable credentials. For individuals without smartphones, printable Biometric Verification Cryptograms are being developed, ensuring inclusivity and offline usability.

Jacques Von Benecke, Chief Technology Officer at DHI, commented, “To adapt our platform to Bhutan's challenging terrain, we developed innovative solutions for reaching individuals without internet access, smart devices, or the ability to travel to cities for connectivity. Enabling citizens to access Government services remotely through the NDI platform will not just make it faster and easier, but will reduce the requirement for travel, helping to keep Bhutan carbon negative in the future and reducing congestion and pollution in our cities.”

The NDI Act provides legal recognition to digital credentials issued on the Bhutan NDI wallet, NDI platform, and NDI services, facilitating cross-sector and cross-border digital transactions. Additionally, the Act enhances existing laws, rules, and regulations by enabling the use of digital transactions during their enforcement.

Ujjwal Deep Dahal, CEO of Druk Holding and Investments, emphasized the significance of the NDI Act, stating, "The Act's purpose is to enable the establishment of an innovative NDI infrastructure, promote the adoption of digital credentials, foster digital trust between issuers, holders, and verifiers, and enhance the privacy and security of digital credentials and data."

The NDI legal framework, combined with the digital identity ecosystem, will foster Bhutan's digital economy, ensure social security, enhance accessibility, and facilitate seamless utilization of citizens' identities both domestically and internationally.

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; health tech, 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:

https://www.dhi.bt/

www.tech.gov.bt

Media Inquiries

Druk Holding & Investments: dhi@dhi.bt

GovTech Agency Bhutan: ljamtsho@tech.gov.bt