October 18, 2023
5 min read

eIDAS 2: Electronic Identification with Digital Wallets

What is eIDAS?

In our increasingly digital world, establishing and maintaining secure and trustworthy electronic identification (eID) has become critical for accessing various online services. The European Union's Electronic Identification, Authentication, and Trust Services (eIDAS) regulation has played a significant role in streamlining electronic identification across the EU. The eIDAS 2 initiative aims to further revolutionize the digital landscape, particularly by introducing digital wallets as a means of electronic identification. This article, written by a professor, will provide an overview of eIDAS 2 and discuss the implications of digital wallets for electronic identification.

The European Union's eIDAS regulation, established in 2014, provides a legal framework for electronic identification and trust services in the EU. It standardizes electronic transactions and ensures their security, enabling citizens, businesses, and public institutions to access online services and conduct transactions with confidence. eIDAS has three main objectives: to provide secure cross-border electronic identification, to facilitate trust services like electronic signatures, and to create a single digital market across the EU.

Who Issues eIDs?

eIDs are issued by trusted authorities, such as national governments or other designated organizations. These entities are responsible for verifying the identity of individuals and businesses and issuing eID credentials accordingly. Under the eIDAS framework, EU member states are required to recognize and accept each other's eIDs, enabling seamless access to digital services across borders.

With the advent of eIDAS 2, digital wallets have emerged as a transformative tool in electronic identification. A digital wallet is a secure, user-friendly application that stores and manages an individual's or business's eID and other digital credentials. These wallets enable users to access online services, conduct transactions and sign documents electronically, all while ensuring the security and privacy of their personal information.

Digital wallets offer numerous benefits, such as:

Convenience: Users can access their eID and other digital credentials from a single application, streamlining the authentication process for various online services.

Security: Digital wallets employ advanced encryption and authentication methods, safeguarding users' sensitive information against fraud and identity theft.

Privacy: Users can control which information is shared with online service providers, protecting their personal data from unnecessary exposure.

One of the primary goals of eIDAS 2 is to enhance the interoperability of electronic identification systems. Interoperability refers to the ability of different eID systems to work seamlessly with one another, allowing users to access services and conduct transactions across borders without friction. By establishing common standards and protocols, eIDAS 2 aims to foster a more integrated digital ecosystem across the EU and beyond.

To achieve this, eIDAS 2 focuses on promoting the adoption of digital wallets and developing a universal framework for their implementation. This framework includes guidelines for technical specifications, security requirements, and data protection, ensuring that digital wallets are compatible and can be used for a wide range of online services.

While eIDAS primarily concerns the European Union, similar initiatives have emerged in other regions to promote secure electronic identification. For instance, the United States has the National Strategy for Trusted Identities in Cyberspace (NSTIC), which seeks to create an identity ecosystem that enhances privacy, security, and user choice. Likewise, Asian countries like Singapore and India have implemented their respective electronic identification systems, SingPass and Aadhaar.

As electronic identification gains traction worldwide, there is a growing need for global cooperation and standardization to ensure seamless cross-border transactions and access to digital services.

The Future of Digital Identity

With the rapid advancements in technology, the future of digital identity is set to be more secure, efficient, and user-centric. The adoption of digital wallets, as promoted by eIDAS 2, will play a pivotal role in this transformation. As more people and businesses rely on digital credentials, electronic identification systems must continue to evolve to meet their needs.

Some potential developments in the future of digital identity include:

Increased adoption of biometrics: Biometric technology, such as fingerprint and facial recognition, will likely become more prevalent in digital identity verification. This will enhance security by providing an additional layer of authentication beyond traditional passwords and PINs.

Blockchain-based identity systems: Blockchain technology has the potential to revolutionize digital identity management by providing a decentralized, transparent, and tamper-proof platform for storing and verifying personal information.

Artificial intelligence and machine learning: These technologies can be employed to detect and prevent fraudulent activities in real-time, further enhancing the security of digital identity systems.

Greater collaboration between governments and the private sector: As the demand for secure and interoperable electronic identification grows, collaboration between governments and private companies will be crucial for developing and implementing innovative solutions that meet the needs of users worldwide.

In conclusion, eIDAS 2 represents a significant step forward in transforming electronic identification with digital wallets. By streamlining the authentication process, enhancing security, and promoting interoperability, eIDAS 2 will have a profound impact on the way individuals and businesses access digital services and conduct transactions. As electronic identification systems continue to evolve, it is essential for governments, private companies, and other stakeholders to work together to ensure that the digital ecosystem remains secure, efficient, and user-friendly for everyone.

Share this post
Book a Demo

Contact us now to schedule a personalized demo and see how Togggle AML's platform can help your institution stay compliant, efficient, and secure.

Get Started Today!

Start securely onboarding new clients with our automated KYC verification. Get in touch with us today for a free demo.

Book a Demo
image placeholder