“Understanding the EU's ambitious plans for a universal digital identity system”
The European Union has been progressively working towards establishing a unified digital identity framework to allow easier access to online services for citizens and businesses across the bloc. With the regulatory guidelines now in place, the EU is aiming to roll out ‘digital identity wallets' from 2026 that could potentially transform how identities are verified in the digital space.
These upcoming digital wallets will function as multi-purpose virtual IDs stored on apps. Europeans will be able to securely store important documents like passports, educational certificates, healthcare records and more in the wallets. More importantly, the wallets will empower individuals to selectively share specific credentials with both public and private entities online for identification purposes.
The architecture of the wallets is being designed with strong privacy and security features in mind. Data sharing will be minimised and profiling will be limited through techniques like zero-knowledge proofs. Citizens will have full control and visibility over how their stored information is utilised. Additionally, wallet providers will have to comply with the EU's stringent GDPR rules on data governance.
Once rolled out across EU nations in the latter half of this decade, the digital identity framework could help streamline online KYC needs for a wide range of essential services. It may also strengthen the EU's authority on data privacy rules and potentially lessen dependence on big tech platforms for identity verification. However, some activists have expressed concern over potential surveillance risks if citizen data hosted in these digital wallets is compromised.
Only time will tell if the European Union's ambitious vision of a universal digital identity system becomes a reality. But the initiative is a step towards creating a user-friendly identity layer for the increasingly digital lives of Europeans.
