Europe's Digital Revolution: eIDAS 2.0 and the Rise of European Digital Identity Wallets

February 13, 2024: Europe braces itself for a digital revolution as the eIDAS 2.0 regulation is set to introduce the European Digital Identity Wallets (EDIW). This ambitious plan aims to equip over 80% of Europeans with digital wallets by 2030, causing a significant surge in the Europe Decentralized Identity Market.

eIDAS 2.0: A New Era of Digital Trust

The eIDAS 2.0 regulation, an expansion of the existing eIDAS framework, aims to bolster digital trust services and interoperability. The European Commission has proposed the European Digital Identity Wallet, a secure platform for storing and managing digital credentials. This wallet will provide a home for personal identification data, qualified signatures, and various electronic attestations.

Empowering Businesses and Citizens

The EDIW is expected to benefit various sectors, including enterprises, governments, and citizens. The digital wallet will simplify online transactions, streamline bureaucratic processes, and enhance data protection. By 2030, the European Commission aims to make the EDIW mandatory for public sector adoption and widely accepted by private service providers in sectors such as transportation, energy, banking, and finance.

EDIW: A New Player in the Payments Landscape?

The European Digital Identity Wallet is envisioned to support multiple use cases, including opening bank accounts, authorizing online transactions, and making digital payments. However, concerns have been raised about the inclusion of payment authorization within the EDIW's functionalities due to liability aspects and potential legal challenges. The European Commission emphasizes that the EDIW is designed to complement existing solutions offered by banks for identification and authentication, not replace them.

While the eIDAS 2.0 regulation promises to bring about a new era of digital trust and efficiency, it is not without its challenges. Issues related to organizational independence, remote access to banking services, video identification, electronic signatures in public administration, and biometric authentication mechanisms must be addressed to ensure the successful implementation of the European Digital Identity Wallets.

The proposal for a Regulation amending the eIDAS Regulation is expected to be decided upon in the spring of 2024. If approved, the Post and Telecom Authority (PTS) will serve as the supervisory authority for trusted services under the expanded eIDAS framework.

As Europe embarks on this digital transformation journey, it is essential to strike a balance between innovation, convenience, and security. By addressing the concerns and weaknesses identified in the current system, the eIDAS 2.0 regulation can truly deliver on its promise of enabling secure electronic interaction between citizens, businesses, and public authorities.

Note: The European Digital Identity Wallets are not to be confused with cryptocurrency wallets. They are designed to store and manage digital credentials, facilitating secure and efficient online transactions.