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Estonia Charts Future Course for Digital Identity and Wallets

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Estonia Charts Future Course for Digital Identity and Wallets
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Estonia is charting its course toward a future where physical identity cards coexist with evolving digital solutions, notably the upcoming European Union Digital Identity (EUDI) wallet.

In a recent proposal by the Estonian Ministry of Interior, the idea of making ID cards optional was floated, reflecting the increasing reliance of citizens on the country’s array of digital services. However, this proposal faces resistance within the Ministry of Economic Affairs and Communications (MKM).

Currently, Estonians are legally required to possess an ID card, while digital IDs remain voluntary. Passports, meanwhile, are not mandatory. This has led to concerns that lifting the requirement for ID cards could leave some residents without any form of identification, as reported by Estonian Public Broadcasting (ERR).

Madis Tapupere, head of digital state technologies at the Ministry, highlights the historical significance of the mandatory ID card, which played a pivotal role in driving Estonia’s digital transformation. However, with the EU’s impending regulations on online identifications and transactions, certain digital identity credentials, such as Mobile-ID, may become obsolete for digital signatures, alongside Smart-ID, another alternative ID method.

Despite these changes, ID cards, produced by Idemia, are expected to persist as a backup option. Tapupere notes that Estonia can leverage Idemia’s JPatch technology to update ID cards remotely, ensuring their continued relevance in the evolving digital landscape.

Currently, approximately 1.1 million out of Estonia’s 1.3 million population own an ID card, with around 840,000 holding passports. Digital IDs, however, have seen lower uptake, with 244,000 using Mobile-ID and nearly 700,000 using Smart-ID.

Gregory Kuhlmey, digital identity program manager at Idemia, anticipates that different digital wallet solutions will continue to coexist alongside national wallets, despite the appeal of a unified solution. He emphasizes that while national wallets prioritize security, they may sacrifice some usability features.

In conjunction with the proposal to make ID cards optional, there are plans to introduce the mRiik (mState) digital identity mobile application, slated for release this summer. Cybernetica, in collaboration with the Estonian Information System Authority (RIA), will analyze the architecture of mRiik and its compatibility with Estonia’s digital ID ecosystem.

The partnership between Cybernetica and Idemia underscores their commitment to building Estonia’s digital government ecosystem, ensuring its resilience and adaptability in the face of technological advancements.

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