The EU Digital Identity Wallet: A Comprehensive Guide to Europe's Digital ID System

The European Union (EU) plans to launch a universal digital identity system by 2026, which will include digital identity wallets for EU citizens, residents, and businesses. This system aims to make various services accessible across member countries seamlessly and securely. Announced in 2021, the EU’s digital identity wallets are currently undergoing testing to ensure functionality and security.

Context and Background

Countries in Asia and Africa, such as India with its DigiLocker system, have already implemented national biometric digital IDs. Similarly, some EU countries, like Estonia, have developed decentralized e-ID systems.

However, the EU aims to create a unified digital ID framework that will facilitate seamless cross-border online interactions, enhancing accessibility and security for its users.

Use Cases for the EU Digital Identity Wallet

The primary goal of the EU Digital Identity Wallet is to simplify the lives of citizens, residents, and businesses while ensuring that their data remains secure and private.

Users will be able to store digital versions of identity cards, such as driving licenses and government IDs, for online verification. This will be particularly useful for banking, registering new SIM cards, and other online services. Additional functionalities of the wallet include the ability to store:

• Medicine prescriptions

• Digital signatures

• Bank account information for easy online transactions

• Key travel documents, such as boarding passes, and facilitate hotel reservations

• Education credentials for job applications

Technical Specifications of the Wallet

The EU Digital Identity Wallet Toolbox should be created by Member States working together, according to a June 2021 recommendation by the European Commission. This Toolbox includes technical standards, recommendations, and an Architecture and Reference Framework (ARF).

The first iteration of the Toolbox, which included a draft ARF and described the guidelines and procedures for creating the EU Digital Identity Wallet, was released in February 2023.

The eIDAS Expert Group's and Large Scale Pilots' feedback is regularly included into this document. May 22, 2024 saw the release of the most current upgrade (v1.4). You can use the European Digital Identity GitHub repository to submit toolbox feedback.

Additionally, the European Commission is developing reusable code libraries, known as the Wallet Reference Implementation, to expedite wallet deployment.

Each EU Member State will provide at least one EU Digital Identity Wallet for its citizens, residents, and businesses, ensuring seamless cross-border functionality through a common set of standards and specifications. These standards will be made mandatory through Implementing Acts.

Pilot Projects

To test and refine the wallet, four large-scale pilot projects have been initiated across Europe. These projects, launched in April 2023, focus on building prototypes and testing everyday use cases of the wallet.

These pilot initiatives involve a group of 360 public authorities and business companies from 26 EU member states, as well as Norway, Iceland, and Ukraine. Funded by European Commission grants, these projects bring together public and private sector expertise from across the EU to test the wallet's specifications and ensure its practical viability.

Conclusion

The EU Digital Identity Wallet represents a significant step towards a unified digital identity framework across Europe. By 2026, this system aims to enhance the ease of accessing services across member countries while maintaining high standards of security and privacy. With ongoing testing and development, the EU Digital Identity Wallet promises to revolutionize digital identification and interaction within the European Union.