The European Union is famous for its ambivalent relationship with privacy: on the one hand, it was the first place in the world to apply strict data protection rules. On the other hand, its central bank digital currency (CBDC) project lacks the anonymity standards of private cryptocurrencies.
However, last week EU lawmakers took a vital step towards embracing privacy in the space of citizens’ digital identities. On February 9, the Committee on Industry, Research, and Energy included the zero-knowledge proof standard in its amendments to the European digital identity framework (Electronic ID). The latest update was voted on by 55 votes to 8 in the Committee; the draft will now move to the negotiating phase of the tripartite dialogue.
While the latest draft is not yet publicly available, the press release specify that EU citizens would be given full control of their data and the choice to decide what information to share and with whom:
“The new electronic ID would allow citizens to identify and authenticate themselves online (via a European digital identity wallet) without having to resort to commercial providers, as is the case today, a practice that raised concerns about trust, security and privacy”.
As Jonas Fredriksen, Senior Director of EU Government Affairs at Circle has said noted On twitter:
“The proposal would facilitate the emergence of new business models and opportunities in the digital economy, as companies develop innovative products and services that are based on zero-knowledge evidence and electronic identification solutions.”
Zero-knowledge proofs have recently been in the spotlight for researchers as a possible means of ensuring regulatory compliance and privacy in digital currencies.
The joint document from the San Francisco-based Fundación Mina, operator of the Mina Protocol; German bank Hauck Aufhäuser Lampe; and the Interdisciplinary Center for Security, Reliability and Trust at the University of Luxembourg showed how exactly zero proofs can be connected to Europe’s eIDAS electronic identity system.
Related: Polygon tests zero-knowledge builds, mainnet integration input
However, not everyone is convinced by this solution. Writing for Cointelegraph, Balázs Némethi, CEO of Veri Labs and co-founder of kycDAO, stated that when evidence alone is insufficient and the sharing of personal information between transaction participants is essential, it is recommended to rely solely on outside solutions. of the chain. .
