European citizens and businesses will soon be able to witness the introduction of European digital identity. In the future, using online services, from banking to public administration, will be as simple and secure as using your passport or identity card. This is the future that the European Union is designing for 2025.
European digital identity aims to simplify the lives of European citizens, but it also opens up new opportunities for businesses, which will be able to offer more seamless and secure customer experiences. But what is European digital identity and how will it impact our daily lives?
What is European digital identity?
European digital identity is a European Commission project which aims to create a unique and secure identification system for EU citizens and residents. This system will allow people to access public and private services online in a simpler and more secure way. It is still under development, but should be in place by 2025. The people affected by this project are citizens and residents of the EU, as well as businesses that offer online services to people in the EU.
The standards are defined in Regulation (EU) 2021/1230 of the European Parliament and of the Council of 7 July 2021 concerning a European framework relating to a digital identity (electronic identification). This regulation came into force on July 1, 2022.
The 3 main European digital identity standards
- The European digital identity must be based on a set of personal identification data (PID), such as the noun, the birthdate, the nationhood And theaddress. This data must be verified by a trusted third party, such as an EU Member State, an electronic identification service provider (PSDi), or an online service provider.
- European digital identity must be protected by strict security measures, such as encryption and two-factor authentication:
- Encryption is a process that allows data to be transformed into an unreadable format without the appropriate key. This makes data more difficult to steal or change.
- Two-factor authentication is a process that requires two pieces of validation to access an account or service. These elements can be a password, a one-time code, a fingerprint, or another biometric element.
Using encryption and two-factor authentication will help prevent fraud and identity theft by making it harder for attackers to steal or impersonate a person.
Here are some concrete examples of how these security measures can be used to protect European digital identity:
- Digital identity data can be encrypted before being stored on servers. This makes them unreadable to unauthorised persons.
- Users may be asked to provide a single-use code when connecting to an online service. This code is sent to their smartphone or other device via a text message or an authentication application. This makes it more difficult for attackers to log into an account without user authorization.
- Users may be asked to provide a fingerprint or other biometric data to confirm their identity. This makes it harder for attackers to steal someone's identity, even if they know their password.
3. This means that EU citizens and residents will be able to use their digital identity to access services in any EU country.
European digital identity will be optional, and will be used for a variety of purposes including:
- Electronic signature of documents
- Request for social benefits
- Opening a bank account
- Making a doctor's appointment
- Booking a hotel room
- Buying a train ticket
Why are some opposed to the establishment of European digital identity?
Some citizens argue that the accumulation of their personal data in a single digital system increases the risks of violating their privacy. They are worried about who can access their information and how it will be used.
However, the EU is implementing cutting-edge technologies that require strict and demanding security processes to avoid abuse.
European digital identity has numerous advantages for the protection of identity, the limitation of the sharing of attributes, the avoidance or limitation of identity theft, and the creation of digital trust.
Will European digital identity allow governments (and other EU member countries) to control them as they see fit?
No, on the contrary, it makes it possible to protect them more and to give the user total sovereignty over their personal data and their sharing. You'll be in control of what data you want to share. Institutions will not be able to access more information than what you are willing to provide.
Is European digital identity likely to increase the risk of identity theft?
No, thanks to strict security measures, such as encryption and two-factor authentication. This helps prevent fraud and identity theft. European digital identity makes it more difficult to impersonate a person. When you bank online, European digital identity uses several reliable verification methods to make sure it's you, reducing the risk that someone else can access your account.
Will European digital identity allow businesses to collect more personal data?
When you use the European digital identity to access an online service, only information that is essential to using the service, such as name and date of birth, for example, will be shared to confirm your identity. Other information, such as your email address or postal address, will remain private. European digital identity will never share more than necessary. It creates digital trust between EU citizens and residents, as well as businesses that offer online services. For example, businesses can be confident that the users who connect to their services are who they say they are without having to ask for a lot of personal data.
Some examples that illustrate the advantages of European digital identity:
- Imagine that you are a student studying abroad in another EU country. You need to apply for a student loan, but you don't have a bank account in this country. With European digital identity, you can easily apply for the loan online, using your identity card or smartphone. You don't need to go to a bank or provide any other personal information.
- For e-retailers who need to identify their customers, they must create an account on each e-commerce site, providing their personal information each time. This can discourage some customers who don't want to go through a lengthy signup process or who are concerned about the security of their data. With the digital identity they will be able to connect to the e-commerce site using their European digital identity. This simplifies the registration and login process as they don't need to remember multiple usernames and passwords.
European digital identity is an important project that will simplify and secure online transactions for EU citizens and residents. Companies that offer online services must comply with this project to ensure the safety of their users.
ShareID a solution that complies with European digital identity standards (and more)
ShareID offers strong authentication solutions linked to sovereign identity that meet the requirements of European digital identity. Our solution allows users to prove their identity remotely in a simple and secure way using their smartphone or computer.
Our particularity is our method of managing and securing the personal and biometric data of our users. In fact, we never store data and thus avoid any risk of theft or possible alteration of your personal data.
If you are a business that offers online services to people in the EU, it is important to comply with European digital identity. ShareID can help you get there.
Contact us today to find out more about our strong authentication solutions.
To remember
What is European digital identity?
The European digital identity is the equivalent of an online identity card that you can use anywhere in the European Union. It is made by the EU to make it easier and safer to access various online services, such as doing administrative procedures or using private services such as online banks.
When will European digital identity be available?
It will be available around 2025.
Who will be able to use European digital identity?
The people affected by this project are citizens and residents of the EU, as well as businesses that offer online services to people in the EU
Is digital identity mandatory?
No, it will be optional.
