The EU has launched a large-scale pilot project to test the technical specifications of the Common Toolbox for the EU Digital Identity Wallet (EUDI). The EUDI, developed under the proposed European Digital Identity Regulation, aims to empower European citizens and businesses to share identity data securely. The prototype wallet, part of the Digital Europe Programme, will undergo testing in various sectors, including healthcare, financial services, education, and transport. It will be open source and available for reuse by member states, Pilot Projects, and other contributors.

The EUDI will be piloted in four large-scale projects, originally initiated on 1 April 2023, involving over 250 private companies and public authorities across 25 member states and partner countries. Eleven use cases will be explored, covering scenarios like accessing government services, opening bank accounts, SIM registration, mobile driving licenses, signing contracts, claiming prescriptions, travelling, organisational digital identities, payments, education certification, and accessing social security benefits. Each pilot project will enhance the security, user-friendliness, and interoperability of the reference implementation developed by the European Commission.

The large-scale pilots are organised by different consortia, focusing on specific aspects. The NOBID consortium, involving Nordic and Baltic countries, Italy, and Germany, will pilot the EUDI for payment authorisation. The DC4EU Consortium will focus on educational credentials and professional qualifications, aligning with the European Learning Model and utilising the European Blockchain Services Infrastructure. Lastly, the EU Digital Identity Wallet Consortium (EUWC) will explore digital travel credentials, organisational digital identities, and payment authorisations.

Why does it matter?

The EUDI is a significant step toward enhancing digital identity and facilitating secure cross-border interactions within the EU. The wallet will aid identity verification (KYC) and user authentication, enhancing company security and reliability. Integration with major platforms, including social networks and e-commerce platforms, is another advantage.

The eIDAS regulation awaits final approval and is set to enter into force by the end of March 2024, with member states mandated to provide digital wallets to residents by 2026. The legislation has garnered positive reactions, particularly from the Iota Foundation, aiming to integrate its blockchain technology for decentralised identity within the European project.