The European Digital Identity Wallet (EUDI Wallet) is upon us, aiming to revolutionise our digital identity. But beyond the initial enthusiasm, a critical analysis is needed to highlight its potential risks and critical issues. Although the EUDI Wallet is inspired by Self-Sovereign Identity, its centralised governance model raises questions about whether it truly protects privacy. Entrusting digital identity management to a small number of providers, however qualified, could expose users to risks of surveillance and control. Moreover, centralising data is an attractive target for cyber criminals, with potentially devastating consequences in the event of a breach.

The EUDI Wallet also promises to simplify access to online services but risks excluding those who are unfamiliar with digital technologies or do not have an appropriate device. The implementation of the wallet must be accompanied by concrete measures to bridge the digital divide and ensure accessibility for all citizens, regardless of their skills or social status.

The Role of Big Tech

The shadow of Big Tech looms over the EUDI Wallet. Companies such as Google and Apple, with their platforms and ecosystems, could exert a strong influence on the development and management of the wallet, threatening the autonomy of the EUDI and the neutrality of the system. It is crucial to ensure that the EUDI Wallet does not become a tool of control in the hands of big tech companies. The implementation of the EUDI Wallet risks getting bogged down in the shackles of European bureaucracy.

The complexity of the decision-making process and the need to coordinate different member states could slow down the adoption of the wallet and hinder its deployment. A more agile and pragmatic approach is needed to ensure timely and effective implementation. Big tech has long since begun to work in a wallet logic – especially in digital payments – and has technological capabilities, huge investment capital and almost total control over the mobile devices used on their side. This advantage could “penalise” the EU’s autonomy in defining the EUDI Wallet ecosystem, infrastructure, framework and data security if not contained and anticipated.

An uncertain future

Fundamental will be to find the right integration between the European Digital Identity Wallet and the governmental digital identities already present and used in the different European countries: the risk is that the European wallet will make obsolete or disregard the digital identities already present and actually used by citizens, effectively erasing years of economic investment by governments and private individuals and what has been done so far in terms of “popularisation” on the importance and use of these tools.

The presence of private actors in the wallet ecosystem cannot be taken for granted; quite the contrary. In Italy, this is well seen in the number of private service providers for SPID and CIE, which is still limited compared to the potential. The involvement of the private sector in the EUDI Wallet will have to be incentivised with a defined, bidirectional business model, which is essential to increase the number of services accessible through the wallet and, thus, the diffusion of the wallet itself. The EUDI Wallet represents an opportunity to modernise our digital identity, but it is not without risk. Addressing the critical issues highlighted lucidly is crucial, as well as ensuring privacy protection, digital inclusion, and independence from Big Tech. Only then can the EUDI Wallet be a handy and secure tool for European citizens.

Following the neutrality

The neutrality and autonomy of the EUDI Wallet are critical to ensuring public trust and widespread adoption. The European Union must be vigilant to ensure that Big Tech does not undermine these principles by imposing open standards, transparent protocols, and independent control mechanisms. Otherwise, the EUDI Wallet risks becoming a double-edged sword, jeopardising European citizens’ privacy and digital freedom. Added to this is the unknown of European bureaucracy, an obstacle that could slow down the implementation of the EUDI Wallet and undermine its effectiveness.

The complexity of decision-making at the EU level, combined with the need to coordinate 27 member states with different needs and priorities, could generate delays, inefficiencies and compromise solutions that end up distorting the initial project. To prevent the EUDI Wallet from getting bogged down in bureaucratic fetters, a change of pace is needed. The EU needs to adopt a more agile and pragmatic approach based on a clear vision, concrete goals and defined timelines. Only then can the EUDI Wallet be implemented in a timely and effective manner, responding to the needs of citizens and helping to build a sovereign and inclusive digital Europe.