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Digital ID at center of Europe’s data sharing changes: report

Digital ID at center of Europe’s data sharing changes: report

As the European Digital Identity (EUDI) Wallet inches closer to reality, organizations are trying to grasp how the project and the new regulation surrounding it will impact their work.

The Centre of Excellence for Data Sharing and Cloud (CoE DSC), an international initiative for data sharing based in the Netherlands, has published a guide on what the European digital identity will mean for data spaces, including service providers and data sharing initiatives.

Common European data spaces are the continent’s attempt to create a single market for data, ensuring that more data becomes available for use in the economy, society and research.

“Digital Identity (DI) is a key building block for data spaces,” the paper notes. “In this dynamic environment, data spaces must adopt a strategic approach to remain agile and effective.”

Data spaces are set to benefit from the EU-wide digital identity which will enable cross-sectoral data sharing and interoperability. Collaboration and partnership among data spaces, digital identity providers and regulatory bodies should be encouraged, the paper notes.

CoE DSC provides an analysis of the upcoming eIDAS 2.0 regulation, which aims to introduce new trust services and regulate the EUDI Wallet for natural persons and the “Organisational Digital Identity Wallet” (ODIW) for legal entities. It outlines several recommendations for organizations working in the data space, including using components and infrastructure created by eIDAS 2.0.

“Data spaces should explore opportunities to maximize leverage of eIDAS2 functionalities as generic building blocks and not reinvent the wheel,” the report says.

In November, the European Parliament and the Council reached an agreement on eIDAS 2.0. The next step will be delivering the wallet’s technical specifications. Government, banking and utilities institutions will be obligated to accept the EUDI Wallet within just 24 months after the regulation is adopted, so preparation will have to start soon, the report warns.

Other organizations have published their own guides on the EUDI Wallet and the upcoming eIDAS, including Identity, a nonprofit organization focused on decentralized identity verification services, and identity verification company iDenfy.

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