The European Union’s ambitious EU Digital Identity Wallet project, though currently under the radar, holds the promise of significant advancements in the coming years, reveal Techcrunch in a lengthy piece that analyse the implication of the project.
This initiative aims to establish a universal digital identity system for all EU citizens, enabling seamless access to a multitude of public and private services through a secure app on their smartphones.
By the end of 2026, EU member states are expected to begin issuing the first EU Digital Identity Wallets.
Unlike existing national e-ID schemes, these wallets will be recognized across all EU countries, creating a cohesive digital identity framework.
Estonia, a pioneer in digital identity, has inspired this broader regional effort, which has been in motion since 2021.
The goal is not to create a single, universal EU wallet app, but rather a system where various wallet apps can operate seamlessly across the EU.
This aligns with the EU’s Digital Single Market mission, aiming to simplify and unify digital interactions within the bloc.
Convenience and Strategic Advantages
One of the primary motivations behind the EU Digital Identity Wallet is convenience.
Europeans will be able to store and selectively share credentials such as IDs, driver’s licenses, medical prescriptions, educational qualifications, and even e-signatures within a single app.
This digital repository will significantly reduce the hassle of managing various physical documents and cards.
Beyond convenience, there are strategic motivations at play. In the rapidly advancing AI age, data has become a valuable asset. The EU Digital Identity Wallet is designed to facilitate data sharing while ensuring privacy and security.
This fits into the EU’s broader digital regulatory framework, including the Digital Services Act (DSA), which aims to enhance online governance.
For instance, the wallet could enable privacy-preserving age verification for accessing adult content websites, aligning with the DSA’s requirements. It could also support the EU’s push for Common European Data Spaces by encouraging citizens to share information more freely and securely.
How about privacy and autonomy?
The EU’s President, Ursula von der Leyen, highlighted the privacy risks associated with constantly sharing personal data to access online services in her 2020 State of the Union address.
The EU Digital Identity Wallet addresses this concern by supporting selective data sharing, allowing citizens to control which information they share and with whom.
The wallet’s voluntary nature further underscores the EU’s commitment to privacy and user autonomy.
This privacy-preserving approach could also enhance digital regulation opportunities.
For example, it could allow users to verify their age without revealing their identity, aiding compliance with new age verification requirements for certain online services.
The EU Digital Identity Wallet is also seen as a counter to the dominance of Big Tech companies like Apple and Google, which control much of the digital infrastructure.
The COVID-19 pandemic underscored the power imbalance between lawmakers and these tech giants, as they set the rules for how exposure notification data could be exchanged.
Beyond digital sovereignty, a universal EU ID wallet could boost the EU’s digitalization efforts, enhancing economic productivity by increasing the efficiency and uptake of online services.
However, successful implementation is crucial. Poor execution could lead to low adoption, as seen with some national e-ID schemes.
What is next?
The EU has laid the groundwork for the Digital Identity Wallet with the Digital Identity Regulation, which came into force in May.
Ongoing efforts include developing secure technical architecture, common standards, and specifications, with the Commission publishing an architecture reference on GitHub and open-sourcing code to build trust and adoption.
Large-scale pilots are being conducted to test the proposed technical specifications. However, significant work remains, including finalizing technical details through a series of implementing acts.
The EU aims to make the Digital Identity Wallet universally available by 2030, giving itself ample time to address potential challenges and ensure a robust, user-friendly system.
While the first wallets are expected to come online in the next few years, achieving universal system access for approximately 450 million EU citizens by 2030 will be a significant milestone.
The success of the EU Digital Identity Wallet could mark a transformative shift in how Europeans interact with digital services, balancing convenience, security, and privacy in the digital age.
