eiDAS 2.0 & Digital wallet

What is eIDAS 2.0?

eIDAS 2.0 is the next evolution of the Electronic Identification, Authentication and Trust Services Regulation (eIDAS), which was first introduced by the European Union in 2014. The initial regulation aimed to create a unified framework for electronic identities and trust services across Europe, allowing for secure cross-border transactions between individuals, businesses, and public authorities. With the rapid growth of digital services and the need for more secure, scalable digital identity solutions, the European Commission proposed eIDAS 2.0 in 2021 to modernize the existing framework. This update brings significant improvements in security, usability, and interoperability, ensuring that European citizens and businesses can safely and easily participate in the digital economy.

A key innovation under eIDAS 2.0 is the introduction of the European Digital Identity Wallet. This wallet allows users to store and manage digital identification and verification data, such as national IDs, medical certificates, and professional qualifications, in one place. The wallet can be used across both public and private services, offering users more control over their data. In addition to the wallet, eIDAS 2.0 extends its scope to cover a broader range of trust services like electronic signatures and time-stamping, providing a more robust framework for digital transactions across the European Union.

Key Features of eIDAS 2.0

One of the most prominent features of eIDAS 2.0 is the European Digital Identity Wallet, a new solution aimed at allowing users to store and share their identity and other personal data in a secure and standardized way. The wallet will be available to all EU citizens, residents, and businesses. It enables individuals to authenticate their identity and share verified information across borders, which will be accepted by public and private sectors alike. The wallet not only simplifies identity management but also gives users greater control over what personal data they share and with whom.

eIDAS 2.0 also introduces increased interoperability among digital identity systems across EU member states. The regulation sets out standards and technical specifications for secure data sharing and identity verification, ensuring that users can seamlessly verify their identity across borders. This will enable EU citizens to access services in other countries without the need for multiple digital identities or manual verification processes. In addition, eIDAS 2.0 expands on the trust services supported under the regulation, enhancing features like electronic signatures, seals, time-stamping, and website authentication. These enhancements are designed to facilitate secure transactions and promote trust between parties involved in digital interactions.

Another critical aspect of eIDAS 2.0 is the mandatory acceptance of the European Digital Identity Wallet by both the public sector and many private services. Governments across the EU will be required to accept the wallet for identity verification and service access. This requirement extends to some private sector organizations, especially those providing essential services such as banking, utilities, and healthcare, where verified digital identities are crucial.

Relevance of eIDAS 2.0 and the Digital Wallet in Data Sharing and Digital Identity

eIDAS 2.0 and the European Digital Identity Wallet are significant advancements for cross-border data sharing and digital identity management in Europe. By providing a secure, standardized method for verifying identity, the regulation removes many barriers to cross-border interactions. For instance, an individual residing in one EU country can use the wallet to access government services or healthcare in another member state without the need for separate verification processes. This interoperability fosters trust and security in cross-border data exchanges, empowering users to control their data in a transparent and compliant manner.

One of the primary benefits of eIDAS 2.0 is the simplification of digital identity management. The European Digital Identity Wallet acts as a universal, portable digital identity that can be used across a wide range of services, reducing the need for multiple logins, credentials, or accounts. This harmonized approach helps prevent identity theft and fraud while enhancing the user experience by making digital services more accessible. Whether interacting with public administrations or private services, users can use the wallet to securely share verified information with confidence that their data will be protected.

Moreover, eIDAS 2.0 serves as an enabler for data spaces, including sector-specific data spaces like healthcare, energy, or finance. In these data spaces, stakeholders exchange data for various purposes such as research, innovation, or service delivery. The regulation ensures that identities of the participants are securely verified, which is crucial for trusted data exchanges. The framework provided by eIDAS 2.0 also aligns with GDPR principles, ensuring that users maintain control over their data and that sensitive information is shared securely and only with authorized entities.

How to Authenticate Using a Digital Wallet or Assure Trust?

The European Digital Identity Wallet uses a variety of mechanisms to ensure secure digital identity verification. The wallet allows individuals and businesses to store verified digital identity attributes, such as personal identification numbers, diplomas, or licenses. When accessing a service, the wallet enables users to share the required credentials securely. These credentials are verified against trusted sources, such as government-issued IDs or trusted authorities, to ensure that the information is authentic. This process reduces the risk of identity fraud and simplifies the verification process for both users and service providers.

In addition, the wallet supports Multi-Factor Authentication (MFA), which adds a layer of security to the authentication process. MFA may involve using a combination of something the user knows (such as a password), something they have (like a mobile device or smart card), and something they are (biometric data such as fingerprints or facial recognition). This layered security approach ensures that only the rightful owner of the wallet can access and share their personal data.

The wallet also relies on trusted certificates and cryptographic signatures to assure trust in transactions. When a user shares their data or signs a document using the wallet, the system uses cryptographic keys and certificates issued by trusted service providers to verify the transaction. These digital signatures ensure that the identities involved are legitimate and that the information has not been tampered with, thereby assuring trust in the transaction.

One of the most critical features of the wallet is its consent management system, which empowers users to control their data. Before any data is shared, users must explicitly consent to what information they are providing and to whom. This feature ensures compliance with privacy regulations such as the GDPR, giving individuals full transparency over how their data is used. By managing consent, the wallet builds trust between users and service providers, ensuring that data exchanges are both secure and ethical.

Finally, trust in the digital identity ecosystem is ensured through a system of trust anchors, which are certified trust service providers that issue digital certificates for identity verification. These trust anchors form the foundation of the eIDAS 2.0 framework, ensuring that all identity verification processes and transactions are backed by reliable and certified authorities. The entire chain of trust is verifiable, giving users and service providers confidence that the identities involved in digital transactions are authentic and secure.

Conclusion

eIDAS 2.0 and the European Digital Identity Wallet are foundational components of Europe’s digital transformation. By providing a secure, interoperable, and user-centric digital identity solution, eIDAS 2.0 facilitates trusted cross-border transactions and data sharing while safeguarding individual privacy. As digital identity becomes increasingly critical to a wide range of sectors—from healthcare to finance—the introduction of this regulation ensures that Europe remains at the forefront of secure digital innovation, enabling both individuals and businesses to thrive in a digitally interconnected world.