EU Digital Identity Wallet (EUDI): Why We Need It and How It Works

Who hasn’t lost their ID or left their driver’s license behind at the most inconvenient moment? Although it may seem complicated, the EUDI (European Digital Identity Wallet) aims to solve these kinds of issues.

The creation of the European Digital Identity Wallet (EUDI) arises as a response to the growing demand for securely and efficiently managing our digital identity. Digital transformation, along with the proliferation of online services, has accelerated the need for a unified system that guarantees the authenticity of our identity, while also providing trust in digital transactions.

The European Union has recognized that, for citizens to feel safe interacting online, an accessible and reliable digital identity is essential. This system seeks to simplify bureaucratic processes and protect users, allowing them to control their own personal information.

In this context, the development of the EUDI represents a significant step toward creating a digital ecosystem where privacy and data protection are fundamental pillars.

What is the European Digital Identity Wallet (EUDI)?

The European Digital Identity Wallet, known as EUDI, is an innovative tool designed to facilitate the digital identity management of European Union citizens. This digital wallet provides a secure space where users can store and share critical information related to their identity, including documents such as identity cards, driver’s licenses, and electronic credentials.

With the EUDI, European citizens have complete control over their personal data, allowing them to decide when and with whom to share their information. This solution not only optimizes identity verification but also promotes a safer and more convenient approach to completing online transactions, such as opening bank accounts or registering for public services.

The EUDI is designed to be an accessible and reliable system that respects user privacy and minimizes the risk of fraud. We can consider it an essential tool in the digital age, offering citizens peace of mind in knowing their data is protected as they interact in the digital environment.

Objectives and Benefits of the EUDI

The implementation of the European Digital Identity Wallet (EUDI) has several objectives aimed at transforming how citizens manage their digital identity within the EU. Below are the main objectives and benefits of this innovative tool:

✅ European-Level Interoperability → Creates a unified system that operates effectively across all EU countries, allowing digital identity to be used without barriers. This facilitates mobility and access to services in any member state.

✅ Secure Access to Public and Private Services → Enables access to a variety of services (governmental or private). The digital wallet simplifies and secures interactions between citizens and entities, eliminating the need for multiple credentials and physical documents.

✅ Privacy Protection → The EUDI offers greater control over personal data, allowing users to decide what information they wish to share and with whom. This ensures their privacy is protected at all times.

✅ Improved Efficiency and Security → By digitizing and streamlining identity verification processes, the EUDI speeds up transactions and enhances security. This translates into reduced fraud risk and greater citizen confidence when completing online procedures.

Key Features of the European Digital Identity Wallet

The European Digital Identity Wallet (EUDI) is designed to revolutionize how citizens manage their digital identity. With a set of essential features, this innovative tool aims to simplify and secure online interactions for its users. Here are the most notable features offered by the EUDI:

💼 Digital Identity Verification: The EUDI allows users to verify their identity securely and easily, enabling authentication across various services without needing to present multiple physical documents. This saves time and enhances security in digital interactions.

💼 Credential Storage: Citizens will have the ability to store a range of documents in their digital wallet (ID card, driver’s license, educational certificates, professional credentials, and medical data). This way, all their information is at their fingertips, ready for use when needed.

💼 Consent for Data Sharing: The EUDI introduces a mechanism that allows users to give explicit consent to share the necessary information for each transaction. This ensures that citizens have complete control over their personal information, enhancing their privacy and security.

💼 Advanced Electronic Signature: The digital wallet will allow users to legally sign documents, recognized throughout the EU. This feature facilitates completing transactions and formalizing agreements without the need for physical presence.

How Will the EUDI Wallet Work?

The European Digital Identity Wallet (EUDI) is described as an accessible and practical tool for both citizens and businesses, allowing them to manage their digital identity effectively. The process begins with downloading the app, available on mobile devices through platforms approved by governments and institutions. Installation will be quick and easy, enabling users to set it up without hassle.

Once the app is on the device, users can link their personal data to the digital wallet. This linkage will be carried out securely to ensure each user’s privacy is protected.

The EUDI Wallet will integrate seamlessly into daily life, facilitating access to a variety of services. For example, citizens will be able to use it to log into public platforms, make digital purchases, or access financial services—all without needing to present physical documents. This functionality will simplify transactions and foster greater trust in the use of digital identity.

Impact on European Citizens and Businesses

For citizens, this tool will provide greater convenience when accessing cross-border services. It will no longer be necessary to manage multiple registrations across different platforms, simplifying administrative processes. Additionally, the EUDI will offer a higher level of security in electronic transactions, instilling confidence in users as they share personal information.

On the other hand, businesses will also benefit greatly from this initiative. The EUDI will facilitate regulatory compliance, especially regarding customer verification. A key process known as KYC (Know Your Customer) and KYB (Know Your Business).

With a reliable and standardized digital identity, businesses can streamline their verification processes, reduce waiting times, and improve the user experience. Procedures will be faster and more secure, leading to increased customer loyalty and an enhanced reputation for companies in the market.

Relationship with European Regulations (eIDAS 2.0)

The European Digital Identity Wallet (EUDI) is closely connected to the eIDAS 2.0 regulation, which governs electronic identification and trust services for electronic transactions within the European Union.

The new regulation updates the European legal framework for digital identity, ensuring that the EUDI becomes part of a reliable infrastructure recognized at the community level.

eIDAS 2.0 enables interoperability between the different identification systems of member states. By aligning with this regulation, the EUDI allows citizens and businesses to conduct secure digital transactions, thereby promoting the adoption of digital solutions across Europe.

If you have more questions about the eIDAS regulation, feel free to check out the official eIDAS 2.0 site 😉​.

Challenges and Concerns about the European Digital Identity Wallet

The implementation of the European Digital Identity Wallet (EUDI) comes with a series of challenges and concerns that require attention. Compared to other digital identity systems globally, the EUDI will need to overcome certain obstacles to achieve widespread acceptance and effective functionality. Successful examples include Estonia’s Digital ID and Australia’s MyGovID, both pioneers in digitizing identity and facilitating access to government services.

One of the main challenges is security and privacy. Citizens must be assured that their personal data will be protected. Therefore, it is crucial to establish strong measures to safeguard this information and ensure it does not fall into the wrong hands. This includes the use of advanced encryption technologies and robust authentication protocols.

Citizen adoption is also a significant concern. For the EUDI to be successful, it is essential that all citizens (including those with limited digital knowledge) can access and use the wallet without difficulties. This will require awareness campaigns and training programs to help users familiarize themselves with this new tool.

Another major challenge is technical interoperability. The EUDI must work seamlessly across all EU member states (with different service providers). This involves creating common technical standards that allow the wallet to effectively integrate into various existing platforms and systems.

In addition to these challenges, it is crucial to consider that other countries, such as Singapore with SingPass, have demonstrated that it is possible to efficiently integrate multiple public and private services. The EUDI will need to learn from these examples to build a truly useful and functional system for all European citizens.

Challenges and Concerns Regarding the European Digital Identity Wallet

The European Digital Identity Wallet (EUDI) represents an important step towards the modernization of digital identity in Europe. Furthermore, it opens the door to a future full of possibilities and technological advancements. The consolidation of the EUDI will bring a series of innovations that will transform the way we interact with the digital world.

One of the most promising areas is the integration of advanced technologies. For example, the use of blockchain could provide an additional layer of security and transparency. This will ensure that personal data is immutable and easily verifiable. Moreover, IA could facilitate processes such as automatic identity verification, leading to an optimized user experience and reducing the time needed to access services.

Another relevant aspect is the expansion of the uses of the EUDI Wallet. In the future, it is possible that the wallet will include additional information (vaccination certificates, educational records, and other documents). This expansion could make the wallet an integral tool in everyday life, facilitating procedures and reducing bureaucracy.

Moreover, the success of the EUDI Wallet could have a domino effect on other continents. Countries and regions could look to Europe as a model to follow. This could spark a global movement toward standardization and security in digital identity, thus promoting greater interoperability between systems worldwide.

Identity Verification and Digital Security: Silt Protects You

The European Digital Identity Wallet (EUDI) is changing the way we manage digital identity, and Silt plays a key role in this process. Our identity verification automation allows businesses to efficiently validate their users, seamlessly integrating with the EUDI.

Silt’s services are aligned with regulations such as the eIDAS Regulation and GDPR, ensuring that businesses operate securely and in compliance with the law.

Moreover, our solutions help prevent fraud and identity theft. We ensure that only verified users have access to sensitive services.

At Silt, alongside EUDI, we are transforming the digital future into a safer and more trustworthy space for everyone.