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EU Plans €1.3B Digital ID Wallet Despite Privacy Concerns

A unified digital ID may promise convenience, but it quietly rewrites the rules of anonymity in Europe.

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The European Commission has unveiled plans to invest €1.3 billion in the Digital Europe Programme (DIGITAL) for 2025–2027, with a significant portion dedicated to advancing the European Digital Identity (EUDI) Wallet.

This initiative aims to provide EU citizens with a unified digital identification system, enabling access to public and private services across member states. While the Commission emphasizes benefits such as streamlined access and enhanced security, the proposal has ignited a robust debate concerning potential risks to privacy and civil liberties.​

The EUDI Wallet could lead to “over-identification,” where individuals are compelled to disclose more personal information than necessary, potentially eroding anonymity in online interactions. Civil society groups have expressed apprehension that the initiative may pave the way for a “real name internet,” diminishing user privacy and increasing the risk of profiling. ​

The centralization of sensitive personal data within a digital wallet raises significant security concerns.

Potential vulnerabilities include:​

Security Breaches: Unauthorized access to the wallet could expose personal information such as identification documents and financial details.​

Identity Theft: Compromised wallets may allow malicious actors to impersonate individuals, leading to fraudulent activities.​

Device Dependency: Loss or theft of the device housing the wallet could result in unauthorized access if adequate security measures are not in place.​

The implementation of unique and persistent identifiers within the EUDI Wallet could facilitate extensive tracking of individuals’ online behaviors. This raises concerns about the potential for pervasive surveillance and profiling by both governmental bodies and private entities, infringing upon personal freedoms and privacy rights. ​

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