The European Union (EU) has recently introduced a new regulation concerning digital identity, mandating that member states offer at least one EU digital identity wallet to all citizens and residents. This regulation, initially proposed in February 2023 and updated on May 21, 2023, is set to be fully implemented by 2026. The aim is to revolutionize how European citizens manage their personal and professional lives by enabling electronic signing and storage of documents such as university diplomas and train tickets.
Thierry Breton, the EU Commissioner for the Internal Market, emphasized the transformative potential of the digital identity wallet. He highlighted that the wallet aims to seamlessly integrate convenience, safety, and privacy, thus changing the way European citizens and businesses interact with online services.
The European Commission has allocated 46 million euros ($50 million) towards four large-scale pilot projects to test the functionality of the EU Digital Identity Wallet. They have also announced a second call for further pilots to bolster the deployment of these wallets across the continent. This ambitious initiative has sparked discussions regarding the look and functionality of a government-issued digital ID wallet, as well as concerns about maintaining privacy and regulatory compliance on such a vast scale.
To delve deeper into the privacy concerns and technical challenges of implementing digital identity solutions, interviewed Dr. Jonas Gross, CEO of Hakata, a company specializing in privacy solutions for traditional and blockchain-based businesses. Dr. Gross highlighted two primary principles for digital identity solutions: user-centric design and a privacy-first approach. He insisted that the user’s data, including identity information, credentials, and personal details, should be stored on the user’s device, ensuring that the user retains full control over this information.
Dr. Gross elaborated on the use of zero-knowledge proofs (ZKPs), a technology that could significantly enhance the privacy of digital ID systems. ZKPs allow users to provide cryptographic proofs of their information without revealing the actual data. This ensures that personal details remain confidential while still verifying necessary information. For example, ZKPs could allow a bartender to confirm that a customer is over 18 without revealing the customer’s full identity details.
The implementation of ZKPs represents a new standard in data privacy by eliminating data silos related to identity information. Dr. Gross explained one practical application: instead of revealing an entire ID to verify legal drinking age, a specific ZKP could confirm that the person is over 18. This way, only the relevant piece of information is disclosed, safeguarding the user’s other personal details like address and nationality.
Despite the potential of ZKPs, their widespread implementation faces several challenges. One major hurdle is the lack of standardization across different ZK technology stacks, making interoperability difficult. Each tech stack functions differently, complicating the development of universally compatible applications. The security evaluation process for ZK technology is still ongoing in many countries, making it necessary to create dedicated solutions like cloud-based security modules for government and regulated services.
Dr. Gross also pointed out that having reference implementations, such as the EUDI Wallet Reference Implementation, available as open-source on platforms like GitHub could be beneficial. This transparency would enable tech-savvy individuals to review the source code, ensuring that the highest privacy standards are met without relying solely on trust in the solution provider.
The new EU regulation will require all member states to offer at least one EUDI wallet to their citizens and mandate its support across various industries. According to Dr. Gross, this initiative will aid in overhauling the EU’s entire online infrastructure, embedding digital identity into all pertinent workflows within its digital ecosystem. He envisioned a future where concerns about losing a physical ID while traveling would be obsolete, thanks to the robust and secure digital identity platform the EU aims to establish.
Oh, look! More of my tax money being spent on something I dont want. 46 million euros could fix a lot of potholes!
A huge win for convenience and safety. Looking forward to 2026!
This will simplify so many bureaucratic processes. Can’t wait!
So much for convenience. Wallets malfunction or get hacked, and then what? Were stranded without an ID? No thank you.
This sounds dystopian to me. Whos to say our data will be really secure? The EU is just asking for a massive hack to happen.
User-centric and privacy-firstwhat a fantastic approach to digital identity!
Such a proactive step towards integrating technology and security. Kudos to the EU!
Digital IDs could be useful, but not at the cost of our security and privacy. This is too risky in today’s cyber threat landscape. ⚠️🔐
PKPs and digital identity walletsthis is next-level innovation!
Fantastic that the EU is prioritizing user control in this new digital age.
The idea of storing my digital identity in a government-controlled wallet is just asking for trouble. One breach and poof, privacy is gone.
Digital wallets are going to change everything. Thrilled for this update!
Transformative potential indeed! This will revolutionize online interactions in Europe.
Zero-knowledge proofs are fascinating. A big win for privacy!
This new regulation feels like an overreach. I don’t trust the EU to handle my digital identity securely. 🛑