EU introduces digital identity wallet for citizens and businesses

This initiative aims to grant individuals greater control over their personal data, allowing them to manage its dissemination according to their preferences. The EU Digital Identity Wallet is designed to provide a secure and convenient method for individuals and businesses to verify their identities when accessing digital services. Through a dedicated mobile app, users will be able to securely acquire, store, and share essential digital documents, as well as electronically sign or seal relevant paperwork. 

This system promises to streamline various processes, such as opening bank accounts, enrolling in foreign universities, or applying for employment opportunities, making them both simpler and more secure. It's worth mentioning that the initiative emphasises user privacy, ensuring that individuals retain control over their data and its accessibility. 

The forthcoming Digital Identity Regulation, once adopted, is expected to facilitate the digitalisation of public services across the EU, facilitating cross-border interactions.

Primary benefits for businesses 

Businesses stand to benefit from easier access to European markets, as the Digital Identity Wallet will offer secure authentication to potential customers throughout the EU. Each EU Member State will be required to provide at least one version of the EU Digital Identity Wallet, adhering to common specifications to ensure interoperability. 

The eIDAS regulation means that citizens and businesses can use digital wallets to link different documents and attributes and access public and private services. The EUDI Wallet will also help with identity verification (KYC) and user authentication which could benefit companies in enhancing security and reliability. 

Another perk for businesses is integration with major platforms such as social networks, ecommerce platforms and search engines. 

eIDAS now awaits its final stamp of approval from the Council of Ministers and is expected to enter into force by the end of March 2024. After the regulation enters force, regulators will have six months to finalise the technical specifications of the EU Digital ID Wallet. By 2026, all EU member states are mandated to provide digital wallets to every resident. 

The legislation was particularly welcomed by the Iota Foundation which aims to find a place for its blockchain technology for decentralized identity within the European project. The Iota Identity product was designed to consolidate identity management under a single protocol, helping different identity types achieve seamless interaction, according to Biometricupdate.