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Who are you? eIDAS2!

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I recently stumbled across an update of eIDAS. Have you heard of it, eIDAS2? It’s all about our digital identities in the European Union.

The first eIDAS – short for electronic Identification, Authentication, and trust Services – tried to sort out all the ways to recognise who you are online. That first version was implemented in 2016. The key to that first version was to create a framework for electronic signatures that was standardised across all European member states.

The new update, eIDAS2, adds significant expansion of that framework including:

Universal Digital Identity Wallets: the aim is to take your physical wallet and turn it digital on your smartphone or computer. This digital vault allows users to securely store their proof of identity and use it anywhere within the EU with ease.

Streamlined Cross-Border Access: the aim is to get rid of cumbersome processes associated with using digital IDs across EU member states. eIDAS2 streamlines this experience by allowing smoother access to services, irrespective of geographical boundaries.

Enhanced Data Protection Measures: with eIDAS2, regulations are implemented to tighten the security and confidentiality of personal data. Importantly, people will have far more control of their data, enabling selective sharing based on the specific requirements of each service.

Expanded Service Accessibility via Digital IDs: the scope of services that can be accessed using digital IDs is broadened under eIDAS2. This expansion aims to include far more individuals within the digital realm, creating widespread participation in digital transactions and interactions.

eIDAS2 came into force on May 20th – did you notice? Probably not, as it has a staggered roll-out over the next few months.

September 2024 marks the crucial deadline for Member States to integrate eIDAS2 into their national legislative frameworks, ensuring uniformity and compliance across the European Union.

Throughout Q4 2024 and H1 2025, dedicated efforts will be directed towards the implementation of Qualified Trust Service Provider (QTSP) initiatives aimed at facilitating the adoption of the European Union Digital Identity (EUDI) Wallet within member states. This phase encompasses comprehensive processes and technical developments to enable seamless integration.

By September 2026, trusted service providers are mandated to align with the updated eIDAS2 requirements, while EU member states are expected to deploy the EUDI Wallet, marking a significant milestone in the broader adoption of digital identity standards.

2025 to 2026 are mandated as the initial stages of development, refinement, and monitoring overseen by the European Commission. Concurrently, citizens, businesses, and institutions will undergo an adaptation period. Additionally, stringent measures outlined in Article 45e of eIDAS2 make clear that the verification of authentication system attributes must be implemented within 24 months of approval.

From 2025 to 2027, there will be focused efforts on specifying and developing requirements for Strong Customer Authentication (SCA) in online identification, particularly with the integration of the EUDI Wallet. This period also involves defining requirements for large online platforms and fostering the acceptance of the EUDI Wallet as a recognised means of authentication across all public administrations, as mandated by Article 5f.

Looking ahead to 2030, the ambitious target is set to achieve 80% adoption among EU citizens and companies using the EUDI Wallet under the standardized eIDAS2.0 framework. This adoption is contingent upon the proactive adaptation efforts undertaken by organisations, companies, and institutions across the EU.

What’s interesting here is that last year the EU's European Payments Initiative (EPI) adopted iDEAL, the Netherlands payments wallet, as their standard.

Between eIDAS2 and the EPI's adoption of iDEAL, Europe appears to be creating a techstack that competes or reflects the one already rolled out in India with Aadhaar and UPI (the Unified Payments Initiative). Interesting times when the EU is trying to catch up with India.

Meanwhile, for more on eIDAS2, I can trhoughly recommend this article by Marta Morrás at Veridas: https://veridas.com/en/what-is-eidas-2/

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Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

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