The country is continually refining a leading-edge national digital identity ecosystem that is inclusive, predicated on high trust-levels, and yet non-compulsory.
With increasing data privacy concerns a hot-button issue worldwide, two concepts are now being pursued to broaden the scope of personal data sovereignty.
Decentralized IDentifiers (DIDs) are a type of globally-unique identifier that enables an entity to be identified in a manner that is verifiable, persistent (as needed), and does not require the use of a centralized registry.
The Self Sovereign Identity (SSI) gives individuals control over the information they use to prove who they are when providing identity information to websites, services, and applications online.
In Asia, Bhutan is the first sovereign nation to adopt SSI-based digital identity at a national level. Pallavi Sharma, official spokesperson for this initiative, shared more details of the country’s National Digital Identity (NDI) project with DigiconAsia.net.
DigiconAsia: Please tell us more about the key aspects of the NDI.
Pallavi Sharma (PS): The NDI Project has been developed as one of the key digital transformation projects under the umbrella of the Digital Drukyul (Bhutan) Flagship Program. It adopts the philosophy of Self Sovereign Identity (SSI), with cutting-edge technology using DIDs, with three main purposes:
- To give citizens a cutting-edge system to seamlessly, safely, and conveniently access government and commercial services
- To future-proof national digital infrastructure by creating a long-term, resilient digital identification model
- To inspire a connected tech service ecosystem that reaches all Bhutanese from remote rural communities to urban centers, ensuring equitable access to services
The NDI is designed as a mobile wallet that holds personal credentials (identity-related documents and certificates) that can be used to prove identity-related information by citizens and residents. These credentials can be shared while accessing government and business services online. The mobile wallet is available on iOS and Android devices.
Users of the NDI app can share verified credentials to authenticate themselves digitally and access services online. The app allows individuals to control who has access to their personal data, and to share only the information that is necessary for a specific transaction or interaction, still providing the necessary verification and authentication mechanisms for trusted interactions with other parties.
Built on DID technology that uses blockchain and cryptographic identifiers, the Bhutan NDI leverages Indicio, a network that facilitates digital transactions to Hyperledger Indy blockchain toolkit. The blockchain is used to write the code that determines how to verify credentials. However, we are also exploring the possibility to migrate to the Polygon blockchain. Additionally, the Bhutan NDI has introduced a Revocation Service as an additional trust root to manage the validity status of all verifiable credentials.
In the coming months, we are working to evolve Bhutan NDI into an edge-based mega wallet with three core capabilities:
- secure digital signing (leveraging cryptographic keys).
- seamless currency transactions (digital tokens, CBDCs, and NFTs, etc.).
- verifiable credential storage and exchange (digital identity proofs — a current capability of the wallet).
Additionally, the wallet will also support electronic-Know Your Customer provisions at international legal regulatory standards. The core vision is for Bhutan NDI to deliver a seamless and secure platform that enhances digital inclusion and accessibility in the country.
DigiconAsia: Is participation in the digital ID system mandatory?
PS: No, it is not mandatory for citizens to use the digital identity wallet. However, Bhutanese citizens and residents will benefit from streamlined digital transactions, including access to financial and banking services, employment processes, and government-to-citizens services. Therefore, all residents are highly encouraged to onboard on the digital identity platform.
As an assurance, the National Digital Identity (NDI) Act of July 2023 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 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 with special needs.
To ensure interoperability in the country’s digital infrastructure, our Trust Registry Service is core to the NDI ecosystem. All participating agencies (government and enterprises) are onboarded into the NDI platform through API/SDK integrations.
Additionally, the NDI Act includes sections that legitimize transactions/interactions completed with verifiable credentials presented through the Bhutan NDI wallet.
To drive adoption, we are working closely with the Desuung Organization to involve all 206 districts in Bhutan.
DigiconAsia: In the event of a security breach or system failure, what is your incident response plan, and how do you communicate with users and stakeholders during such incidents?
PS: Our NDI system has strong crisis response scenario maps and continuity plans in place. We are continuously testing our systems against global best practice, updating security protocols, and proactively monitoring threat typologies.
We also provide multiple points of contact via the app, one-on-one relationship managers, social media, and news media with NDI users.
DigiconAsia thanks Pallavi Sharma for sharing her insights on the Bhutan NDI system.
