The European Union Council and the EU Parliament have reached a political agreement on a framework for a European Digital Identity, allowing citizens to securely access various private and public services using a single online ID. The proposal includes a provision for a “high assurance” digital wallet that can serve as a national electronic ID, with citizens able to sign up for it voluntarily and free of charge.
Lawmakers have also agreed to establish common technical architecture, security standards, and compliance with cybersecurity regulations for digital wallets across the EU.
This development brings the proposal closer to finalization, pending approval by the European Council, and sets a requirement for all EU nations to create digital identities for their citizens by 2024.
Croatian politician Romana Jerković, a supporter of the bill, expressed optimism that a final agreement on the comprehensive package is within reach, emphasizing that the primary objective of the legislation is to enhance the daily lives of EU citizens.
In parallel, the European Commission recently proposed the Digital Euro, a single currency to be accepted across the EU. While the commission stated that the Digital Euro would function similarly to a digital wallet, it remains unclear whether it will be integrated with the EU’s proposed digital wallet app.
The initiatives have faced criticism from lawmakers, with concerns raised by privacy experts about potential risks to citizens’ digital security.
Some lawmakers and experts argue that the removal of unique identifiers from the digital wallet addresses snooping risks but raises concerns about displacing online anonymity. German politician Patrick Breyer of the Pirate Party called for decentralized storage of citizens’ data to reduce the risk of hacks and identity theft.
Security expert Lukasz Olejnik cautioned about privacy and cybersecurity risks associated with managing extensive logs of payment data for the Digital Euro, emphasizing the absence of guarantees despite the commission’s claim that it will be safer than cryptocurrency.
