Global: Australia and Japan Unveil Cross-Border Verifiable Credentials Initiative

In recent years, both Australia and Japan have introduced digital identity initiatives that enable their citizens to verify their identities online. Now, the two countries are collaborating on an unprecedented initiative that will allow their citizens to use verifiable credentials across borders, facilitated by their largest financial institutions and Australia’s digital identity platform, ConnectID.

The initiative, named the Japan-Australia Cross-Border Interoperability Working Group, brings together prominent private companies from both nations. From Japan, participants include DNP (Dai Nippon Printing), the country’s largest smart card maker, and MUFG Bank, its largest bank. On the Australian side, participants include Australian Payments Plus, National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), and decentralized identity technology provider Meeco.

Last week, the companies showcased their first verification test for cross-border interoperability at the European Identity and Cloud Conference 2024 in Berlin. In a presentation video, the group demonstrated how an Australian tourist in Japan could book a tour on the Japanese travel website Sumu using verifiable credentials (VCs) issued by ConnectID and initiated by Australian Payments Plus.

“For the last six months, we have been exploring the technical, legal, and commercial possibilities to establish a trust framework and a technical interchange between Australia and Japan,” said Katryna Dow, CEO and founder of Meeco.

This initiative is the first of its kind in the Asia-Pacific region and aims to leverage the growing economic exchange between the two countries, including tourism, education, trade, and employment.

Among the anticipated use cases are streamlining bank account openings for Japanese students and workers in Australia. The initiative could also address issues like the purchase of forged concert tickets and trading cards, which have recently posed challenges for Japanese retailers. “Cases where identification is required for purchasing popular items or Japanese tours have increased. Japanese service providers are looking for better ways to verify customers to prevent fraudulent sales,” said Rintaro Okamoto, DNP’s head of business development for decentralized identity.

The verification test conducted in May adhered to European Digital Identity (EUDI) Wallet technical specifications and protocols designed by the OpenID Foundation, an international standards organization.

The next phase for the working group involves demonstration tests for various use cases aimed at enhancing customer experiences in both Japan and Australia. These include tourist ticket purchases and bank account openings for migrants.

In April, Japan signed a Memorandum of Cooperation on digital identities and trust services with the EU, facilitating experience exchange on the EUDI Wallet and digital IDs.