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The cost of digital identity wallets in the EU

Ukraine's accession to the EU digital identity wallet prototype looks increasingly like a defining historical moment。What exactly this defining moment was, however, remains unclear.。

As we all know, the intersection of digital finance, identity management and government oversight has sparked national and international discussions about power, privacy and security.。But while governments and businesses vie for control of the digital realm, they seem to have ignored or deliberately ignored the implications of these developments far beyond mere facilitation or financial transactions.。

It is worth noting that Ukraine's accession to the EU Digital Infrastructure Initiative has added a geopolitical dimension to the debate.。Against the backdrop of escalating tensions between Russia and the West, Ukraine's participation in the plan is bound to raise concerns about the politicization of digital identities and their misuse by hostile forces.。

What is the Digital Identity Wallet Plan??

Prototype wallets procured under the Digital Europe initiative have multiple uses。First, it serves as a pilot platform to inform the specifications developed by Member States in cooperation with the European Commission.。In turn, it will eventually help create an EU-wide toolbox for implementing the EU digital identity wallet.。

Second, the prototype will be tested in large-scale pilots in multiple areas such as healthcare, financial services, education and transportation.。Finally, it will be available as open source software for reuse by member states, pilot projects and other contributors.。

These pilot projects are exploring 11 specific use cases, each involving different aspects of identity verification and authentication。These include access to government services, opening a bank account, SIM card registration, mobile driver's license, digital contract signing, prescription application, travel documents, organizational identity verification, online payment, education certification, and access to Social Security benefits。

How about technology centralization?

From the browser wars of the 1990s to the data scandals of Facebook and Cambridge Analytica, history has shown us time and time again how unfettered power integration can undermine competition, innovation, and ultimately harm individual users.。

Indeed, history could repeat itself, as the dominance of centralized platforms is certain to lead to a lack of viable alternatives, further deepening individuals "reliance on them.。At the same time, smaller competitors are bound to struggle to gain the appeal needed to compete effectively or reach the necessary number of users, ultimately limiting consumer choice and innovation in the digital marketplace.。

Thus, while EUDI promises to facilitate and simplify payments and digital interactions, its centralized approach, if left unchecked, could create a dominant system that stifles competition and innovation in the digital identity space.。

In this sense, the convenience and ubiquity of centralized platforms may mask concerns about the potential risks posed by entrusting personal data to a single entity.。

"Full control of your data"

While individuals can ostensibly control their own data, centralized platforms like EUDI tend to wield enormous power and influence in the digital realm.。As tasks ranging from communications and commerce to access to government services become increasingly inseparable from these platforms, individuals may find themselves in the position of having to use them even if they have reservations about privacy and data control。

In this environment, the promise of individuals to control data on centralized platforms can be hollow, because while users may be technically capable of managing their own data in these systems, the broader structural dynamics of the digital ecosystem can put enormous pressure on individuals to comply with the norms and practices dictated by the dominant platform.。

Moreover, historical cases such as the erosion of the right-to-repair law perfectly illustrate how entrenched interests can undermine initiatives aimed at preserving individual freedoms.。Even if individuals can still control their data in the EUDI in theory, the influence of powerful businesses and government agencies may lead to policies and practices that effectively limit this control in practice。

Ultimately, power is concentrated in the hands of a few central entities, and the question of how to balance convenience and personal autonomy has become a matter of careful consideration in the digital age.。

Autonomy for the Digital Future

Instead of merging information, data and power, governments and regulators should avoid choosing and implementing the concept of "winning" systems, and instead allow government agencies to have a comprehensive understanding of technological and economic trends, which should be a recognition of future variability Signals。

EUDI's centralization approach may limit the ability to adapt to different technological and economic trends, as centralization may bias existing players, hindering the entry of small competitors who may bring new views and ideas, thereby stifling innovation。

Disclaimer: The views in this article are from the original author and do not represent the views or position of Hawk Insight. The content of the article is for reference, communication and learning only, and does not constitute investment advice. If it involves copyright issues, please contact us for deletion.