EU digital wallet: 24 of 27 members will miss the deadline

The European Union has set a deadline of the end of 2024 for member countries to establish at least one certified digital wallet. Prior to this deadline, EU-backed pilot projects involving 350 organizations had issued over 1,500 digital credentials and facilitated more than 8,000 cross-border transactions. This wallet, which can store national IDs, driving licenses, diplomas, health insurance, and bank details, incorporates three security measures: selective disclosure, unlikability, and issuer-blindness. Participation in using the wallet remains optional, with paper documents still being valid.

However, the implementation of this digital wallet varies significantly among the countries. Italy has taken the lead, boasting nearly 8 million monthly users. In contrast, Germany intends to launch its digital wallet by January 2027, while the Netherlands has postponed its rollout to late 2027 following a pilot program with only 57 users. Bulgaria is still in the process of finalizing its relevant legislation.

Businesses within the EU are required to accept the digital wallet by December 24, 2027, but financial institutions must comply with the requirement earlier, starting from July 2027, due to anti-money-laundering regulations. Despite these efforts, the digital rights group EDRi has expressed concerns over draft rules that would necessitate facial recognition and diminish privacy safeguards.