The agreement represents a significant stride toward the EU's 2030 goal of providing every European citizen with the opportunity to utilize a secure and privacy-preserving digital identity. The EU Digital Identity Wallet will empower citizens, giving them control over their data and bolstering security as they interact with online services.
What precisely is the digital identity wallet ?
EU Digital Identity Wallets are personal digital wallets, in the form of apps allowing citizens to digitally identify themselves, store and manage identity data and official documents in digital form.
What is the legal background behind this?
The European Parliament and the Council of the EU have jointly announced the successful conclusion of a pivotal agreement pertaining to the regulation introducing European Digital Identity Wallets. This significant achievement signifies the culmination of collaborative endeavors by co-legislators who have been implementing the provisions outlined in the provisional political agreement reached on June 29, 2023.The agreement establishes a legal framework for an EU digital identity, marking the inception of the first-ever reliable and secure digital identity framework tailored for all Europeans.
What changes for European citizens?
In the near future, EU citizens will have the opportunity to acquire an EU Digital Identity Wallet, providing access to public and private online services with robust security measures and the guarantee of personal data protection across Europe.
Will private services accept the EU Digital Identity Wallets?
Private services with a legal obligation to authenticate users will also need to integrate the EU Digital Identity Wallet, unlocking new business prospects. This requirement is evident in various scenarios, including but not limited to payment transactions, opening bank accounts, filing tax returns and specific use cases within the realms of transportation, energy, social security, etc.
The obligation to acknowledge the digital wallet for authentication is also applicable to Very Large Online Platforms designated under the Digital Services Act (DSA).
Can EU citizens be able to use their EU digital identity to apply for a bank loan?
Yes. The procedure of seeking a bank loan usually involves several stages, ranging from scheduling appointments and conducting in-person meetings to gathering and signing various paper documents. This process may need to be repeated if any documents are found to be missing.
With the utilization of the EU Digital Identity, the user simplifies this process by selecting the required documents stored locally on their digital wallet to respond to the bank's request. Subsequently, verifiable digital documents are generated and securely transmitted to the bank for verification, enabling the seamless continuation of the application process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
