Japan, EU validate cross-border digital wallet interoperability

A pilot that was aimed at testing the technical feasibility of cross-border issuance and verification of academic credentials between Japan and European Union (EU) countries using digital identity wallets has been described as successful.

The EU, on July 16, released a report detailing the nature of the pilot, which wanted to test how aligned digital ID interoperability standards between Japan and the EU are. Based on the EUDI wallet prototype, the system also explored practical use cases in business activities like opening bank accounts and student exchanges, demonstrating value for both economic and social interaction.

As stated in the report, the pilot that used open standards confirmed that digital identity credentials issued under the EUDI Wallet and Japan’s My Number Card system can be issued, stored, presented, and verified across different countries and regions. One other key outcome is that cross-border use of digital identity systems is technically possible even where governance frameworks and technical architectures differ substantially. Japan has in the last years been involved in a major architectural shift, transforming the My Number Card from a government credential into a platform for private sector services.

Although the pilot proved the feasibility of interoperability, a key challenge that emerged had to do with the mutual recognition of identity management systems, which will require international agreements and aligned liability rules to create legally binding trust frameworks, the report states. A recent World Bank policy note on digital wallet frameworks emphasizes legal recognition as an important factor for digital wallet interoperability and trust.

The EU-Japan interoperability collaboration is rooted in a Memorandum of Cooperation (MoC) on Digital Identities and Trust Services, which was signed on April 30, 2024, between the European Commission and Japan’s Digital Agency. The MoC was established under the broader EU-Japan Digital Partnership, launched in 2022, which aims to promote human-centric digitalization and foster a Data Free Flow with Trust (DFFT) environment with the aim of countering digital protectionism by championing open standards and trusted data flows.

The pilot is in line with the global push for cross-border interoperability of digital identity systems, specifically in the domain of education, and also underscores the fact that digital wallets can serve as trusted tools for credential exchange beyond national borders.

In many ways, the pilot represents a high-level and technical milestone in cross-border digital identity recognition and one that strengthens the EU’s eIDAS 2.0 ambitions and Japan’s efforts in digital trust in a move that fosters user-centricity, inclusion, safeguards, and sovereignty. It also puts both parties among the pioneers in building digital public infrastructure (DPI) that is secure, interoperable, and globally connected.

Estonia’s digital ID supports cross-border recognition of other IDs in the EU. India has also piloted digital certificates linked to the Aadhaar digital identity.

The Japan-EU pilot report comes at a time the country has also launched a proof of concept (PoC) pilot to test the interoperability of academic certificates with South Korea involving Toppan and Raonsecure.

Article Topics

cross border identity verification  |  digital wallets  |  EU Digital Identity Wallet  |  Japan  |  My Number  |  pilot project  |  verifiable credentials  |  verifiable presentations