The Council of the EU and the European Parliament recently concluded a provisional agreement on the European Digital Identity (eID). However, this agreement raises legitimate concerns about citizens’ privacy, especially in the context of a possible interconnection between eID and the future central bank digital currency (CBDC).
European digital identity (eID), a paradigm shift
The EU Council and the European Parliament recently announced a provisional 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 potential link that could arise between eID and the European Union’s future central bank digital currency (CBDC).
Introduced in June 2021, the regulation provides that member states will offer digital wallets to citizens and businesses, allowing their national digital identity to be linked to various documents such as driving licenses, diplomas or bank accounts.
This approach will make it easier to prove identity and share electronic documents, eliminating the need to use private or common identification methods.
On the surface this seems to offer some comfort, but the crucial question lies in the potential link with the digital euro which is under development.
Concern about privacy
Digital identification is a significant technological advancement, but it can come with considerable privacy risks. For Bob Roos, Member of the European Parliament and ECR Vice-President, this is “a very bad idea”, and he calls all MPs to vote against.
“ 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 push it all the way to the end.“
Recall that proponents of the digital euro have already faced unexpectedly strong political opposition, primarily due to concerns over privacy, government control, and even conspiracy theories. If eID is linked to CBDC, this could mean increased tracking 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 eID amendments by the committee ITRE of the European Parliament (Committee on Industry, Research, Telecommunications and Energy), aims to offer European citizens absolute control over their personal data, thus preventing any misuse or misappropriation of sensitive data.
However, it is essential that European legislators remain vigilant to ensure full respect for citizens’ rights to privacy and security. The potential association between eID 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.
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