The European Parliament is advancing discussions on the modification of the European Digital Identity (eID) framework and the establishment of the European Digital Identity Wallet (EUDI Wallet) to offer EU citizens a secure and convenient way to access to public services.
On March 15, the European Parliament approved further discussion on the modification of the eID framework and the establishment of the EUDI Wallet. The purpose of the EUDI Wallet is to provide EU residents with a digital method to access public services while maintaining control over their personal information.
The European Parliament aims to make the wallet available to 80% of the population by 2030. This could be achieved by requiring the support of e-government services, companies that perform KYC checks, and major online platforms such as Google and Facebook.
After discussions with the European Council, the next step would be implementation. The adoption of the wallet depends on its usability, the main challenge being to simplify the interactions of citizens with public services and administrations.
Clemens Schleupner, a policy officer specializing in digital identity, suggests that consolidating electronic IDs, health cards, driver’s licenses, and other documents into a single wallet has the potential to be very attractive.
Nonetheless, privacy remains a key concern. With final regulations yet to be determined, it is essential to design a legal framework that allows organizations to request user data only when necessary. Wallet providers must ensure compliance with legal requirements when processing data.
Thomas Lohninger, CEO of data protection nonprofit epicenter.works, stresses the importance of privacy and trust to the success of the wallet. He also warned against “over-identification,” which can result in a loss of anonymity during daily interactions.
To address these concerns, the European Parliament has incorporated a non-discrimination clause that protects people who choose not to use the EU wallet. This protection measure must now undergo negotiations involving the European Parliament, the Council of the European Union and the European Commission.
Zero knowledge proofs (zk proofs) can serve as a fundamental feature of the EU wallet, allowing users to selectively reveal specific information.
However, before adoption, EU regulators must confirm that zk tests adhere to privacy regulations and comply with all general requirements of data protection regulations.
The challenge for the EU is to develop a functional, secure and trustworthy digital identity tool for its citizens, which could have far-reaching implications for other blockchain-based and digital ID systems.
