"The dream of a digital Bangladesh has come true," Hasina, the first to receive the smart ID card, told the inauguration ceremony on Sunday.
According to official figures, 90 million of the total 100 million voters in Bangladesh will now get laminated smart identity cards.
The card is required for availing various facilities available to citizens.
The first phase of the distribution starts on Monday at Dhaka's Uttara and Ramna as well as at the northern district of Kurhigram.
Dedicated helpdesk of the National Register of Identities will answer queries on services relating to the NIDs.Authorities has asked citizens to call 105 to have information on any areas regarding the distribution of the cards.
Hasina provided impressions of her fingers and iris as soon as she arrived at the venue on Sunday morning. She then returned her old National ID card to the authorities.
The prime minister handed over President Abdul Hamid's smart ID to Chief Election Commissioner (CEC) Kazi Rakibuddin Ahmad.
Ahmad later handed the new ID card over to President Hamid at the Bangabhaban.
Mashrafe Bin Mortaza, Mushfiqur Rahim, Shakib Al Hasan, Tamim Iqbal, Mahmudullah Riyad, Mustafizur Rahman, Sabbir Rahman, Taskin Ahmed, Soumya Sarkar, Nasir Hossain, Imrul Kayes and Taijul Islam received their NIDs from the prime minister.
"The purpose of a national ID is not only for voting. It can be used to avail a host of other services," said Hasina.
Emphasising proper security measures for the NID database, she said, "I would request the election commission to secure the database so that it cannot be misused."