The EU Council and the European Parliament recently announced a provisional agreement on the European Digital Identity (eID)

The EU Council and the European Parliament recently concluded a provisional agreement on the European Digital Identity (eID).

“With the approval of the European Digital Identity Regulation we are taking a fundamental step so that citizens can have a unique and secure European digital identity. This is a key step forward for the European Union to be a benchmark in the digital field, protecting our rights. and democratic values,” said Nadia Calviño, First Vice President and Acting Minister of Economic Affairs and Digital Transformation.

However, this agreement raises legitimate concerns about the privacy of citizens, especially in the context of a possible interconnection between electronic identification and the future central bank digital currency (CBDC).

European Digital Identity (eID), A Paradigm Shift

The EU Council and the European Parliament recently announced an interim agreement on the European Digital Identity (eID), a development that raises major concerns, particularly regarding privacy protection.

This agreement provides a framework for reliable and secure digital identification for all European citizens, with the aim of ensuring universal access to secure electronic devices. However, some experts fear the possible link that could arise between eID and the future central bank digital currency (CBDC) of the European Union.

Introduced in June 2021, the regulation establishes that member states will offer digital wallets to citizens and companies, allowing their national digital identity to be linked to various documents, such as driving licenses, diplomas or bank accounts. This approach will facilitate identity proofing and electronic document sharing, eliminating the need to use private or common identification methods.

At first glance this seems to offer some comfort, but the crucial question lies in the potential link with the digital euro that is developing.

Privacy Concern

Digital identification is an important technological advance, but it can carry considerable privacy risks. For Bob Roos, member of the European Parliament and vice-president of the ECR, this is “a very bad idea” and he asks all MEPs to vote against it.

“Immediately afterwards, European Commissioner Thierry Breton said: “Now that we have a digital identity wallet, we need to put something in it…”, suggesting a link between CBDC and eID.

They ignored all the privacy experts and security specialists. They take it to the end.”

Proponents of the digital euro have already faced unexpectedly strong political opposition, mainly due to concerns about privacy, government control and even conspiracy theories. If the eID is linked to the CBDC, this could mean greater monitoring and surveillance of the financial activities of European citizens.

Privacy Protection and Data Control

To address these concerns, privacy protection measures are necessary. The introduction of the zero-knowledge proof protocol, mentioned in the amendments relating to electronic identification by the ITRE committee of the European Parliament (Committee on Industry, Research, Telecommunications and Energy), aims to offer European citizens control absolute control over your personal data, avoiding any misuse or misappropriation of sensitive data.

However, it is essential that European legislators remain vigilant to ensure full respect of citizens’ rights to privacy and security. The potential association between e-ID and CBDC must be carefully examined to avoid any disproportionate invasion of the privacy of European citizens.

The future of digital identity in Europe must be based on principles of security and respect for privacy.

By Audy Castaneda

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