The EU’s view on the notion of privacy has not always been very clear. Some of her decisions suggest she prioritizes privacy, others don’t. For example, it was the first to adopt strict regulations to guarantee data confidentiality. But, at the same time, his CBDC project does not meet the data protection standards of private cryptos. That said, EU lawmakers recently approved a privacy-focused proposal.
Towards a use of zero-knowledge evidence within the Union?
On February 9, the EU Committee approved a proposal on the use of zero-knowledge proofs. The latter will therefore be used for digital identifications in the European area. Following approval by lawmakers, the text will complement EU amendments on digital identity (eID). The bill was approved by 55 votes against 8 in the Committee on Industry, Research and Energy. Now it is entering the phase of trilogue negotiations.
A press release was issued to present the bill in question. It indicates that the latter would allow EU citizens to have full control over their data. In particular, they will be able to choose what types of information they wish to share and who can access it.
“The new electronic identity would allow citizens to identify and authenticate themselves online via a European digital identity wallet, without having to resort to commercial service providers, as is the case today, a practice which has raised issues of trust, security and privacy“, can we read in the press release.
Zero-knowledge evidence to ensure anonymity with CBDCs
According to some researchers, zero-knowledge proofs could help ensure the privacy and regulatory compliance of CBDCs. Jonas Fredriksen, Senior Director of European Government Affairs at Circle, did a statement on the subject. He explained that the EU proposal could facilitate “the emergence of new business models and new opportunities in the digital economy“.
Zero-knowledge proofs do not convince everyone. Balázs Némethi, CEO of Veri Labs and co-founder of kycDAO, revealed one of the limitations of this solution. He indicated that evidence alone may be insufficient. He added that sometimes it is essential to share personal information between participants in a transaction. Also, in this case, we can only count on off-chain solutions.
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