Introduction & Purpose of the Discussion
The discussion explores digital identity and trust in Europe, focusing on opportunities and challenges in eIDAS 2.0.
Panelists:
- Viky Manaila – Trust Services Director at Intesi Group and President of the Cloud Signature Consortium.
- Vedran Lalic – Digital Identity Consultant and Advisor for the World Bank.
- Nick Lambert - CEO at Dock Labs.
Complete Video
eIDAS 2.0: Opportunities & Expected Impact
- Biggest beneficiaries of eIDAS 2.0:
- Citizens – Will have control on their data, personal information, who they share it with and for what purpose. At any point, they can withdraw their consent and ask for removal of their data.
- Public Administration – Can deliver more efficient and secure services.
- Private Sector – Benefits from streamlined interactions with customers and partners.
- The role of digital wallets:
- Helps move away from fragmented identity systems (passwords, tokens, physical ID cards).
- Digital wallets are a nice and elegant way to go beyond verification frictions and create a direct and secure channel for communications. Whether it’s between the citizens and the government. Or between the citizens and the private sector businesses.
Sectors That Stand to Benefit the Most
- Financial Services – Faster and more secure onboarding.
- Travel Industry – Simplifies boarding passes, ticketing, and verification.
- Government Services – Seamless public service access without repeated ID checks.
Privacy, Security, and Compliance Considerations
- Ensuring privacy by default:
- Digital wallets must prevent tracking by issuers or service providers.
- The wallet issuer won't be able to see and monitor where citizens are using the wallet or for what purpose.
- Regulatory compliance for Trust Service Providers:
- Increased responsibilities, liabilities, and penalties for violations.
- Any infringement of the regulation could trigger penalties up to €5 million for trust service providers.
- User-Centric Design Is Crucial:
- If the wallet is not easy to use, citizens will turn to private solutions like Apple or Google.
Challenges & Risks of eIDAS 2.0 Implementation
- Fragmented implementation across EU member states:
- Some countries are leaders (e.g., Estonia, Denmark), while others lag due to legacy IT systems.
- Interoperability concerns:
- Need to ensure wallets and identity verification systems work across borders.
- Complexity of compliance for businesses:
- SMEs may struggle to adapt to new requirements.
- There’s a high level of technical detail required for compliance in eIDAS 2.0.
Practical Steps for Businesses & Governments
- Adapting to eIDAS 2.0:
- Governments must provide technical and financial support for SMEs.
- Businesses should begin compliance preparations early to avoid bottlenecks.
- By 2026, 170+ trust service providers will need certification, but there are only about 30 accredited auditors. We’re facing a compliance bottleneck.
- Public awareness and adoption:
- Citizens need education on how digital wallets benefit them.
- Citizens need to understand the wallet isn’t tracking them—it’s actually protecting their privacy.
Future Outlook for Digital Identity in Europe
- The role of AI in identity verification:
- Deepfakes and synthetic identities pose new risks. With AI, identity fraud will evolve exponentially. We need to start preparing now.
- The need for global alignment:
- If eIDAS is successful, other jurisdictions may follow suit, just like GDPR influenced global data privacy laws.
Conclusion & Key Takeaways from the Q&A
- How eIDAS 2.0 Can Help Border Control & Customs
- Digital wallets will enable seamless identity verification for travelers and cargo shipments.
- Invoices, payment receipts, and company attestations will be available in a wallet, simplifying interactions with customs authorities.
- Challenges for Countries That Already Have eID Systems
- Countries with existing mobile ID systems (e.g., Estonia, Nordic nations) will need to integrate and expand their solutions rather than replace them.
- The key benefit of wallets is enhancing existing digital IDs with additional services beyond authentication.
- With eIDAS 2.0, digital wallets go beyond identification—they can fight identity fraud and streamline travel and public services.
- Barriers to Adoption of User-Centric Digital ID Systems
- Lack of trust and privacy concerns remain the biggest obstacles.
- Interoperability issues between different wallets and identity systems could hinder adoption.
- Public administration and businesses need training to confidently accept digital wallets for verification.
- Complexity of Compliance & Support for SMEs
- SMEs struggle to keep up with regulatory and compliance requirements.
- Larger companies have resources to adapt, but smaller enterprises need structured support.
Final Thoughts
- eIDAS 2.0 presents a major step forward for digital identity, offering improved security, privacy, and efficiency for governments, businesses, and citizens.
- However, challenges remain—including fragmented adoption, compliance burdens, and user trust issues.
- Success depends on clear regulation, business adaptation, public awareness, and continuous improvements to ensure widespread adoption.