As part of the European Digital Identity Framework, ID wallets are designed to streamline access to public and private services while ensuring user control over personal data. Below, we explore their core functionalities, regulatory framework, and future potential.

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Core Functionalities of EU Digital Identity Wallets

1. Secure Identification and Authentication
   EUDI Wallets enable users to securely identify themselves when accessing online services, both public and private. They support selective disclosure of attributes, allowing users to share only the necessary information, such as age or nationality, without revealing additional personal details.
2. Storage and Sharing of Digital Documents
   Users can store a wide range of digital documents, including educational diplomas, medical prescriptions, and travel tickets. These documents can be shared seamlessly with service providers, ensuring convenience and efficiency.
3. Electronic Signatures and Seals
   The wallets provide legally binding electronic signatures, enabling users to sign contracts or official documents digitally. This feature is particularly beneficial for businesses and individuals engaging in cross-border transactions.
4. Privacy and Control
   A built-in privacy dashboard allows users to monitor transactions, control data sharing, and report privacy violations. This ensures transparency and compliance with GDPR principles.

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Regulatory Framework and Implementation

The EU Digital Identity Framework, which entered into force in May 2024, mandates that all Member States offer at least one EUDI Wallet by 2026. The framework is supported by five implementing regulations that standardize core functionalities, certification processes, and interoperability requirements.

Key regulatory advancements include:

• Open-Source Licensing: The wallet’s code will be open-source, promoting transparency and preventing misuse.
• Mandatory Acceptance: Very Large Online Platforms (e.g., Facebook, Google) are required to accept the EUDI Wallet for authentication, setting a precedent for broader adoption.
• Free of Charge: The wallets will be provided free of charge to all users, ensuring accessibility.

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Future Potential of EUDI Wallets

1. Cross-Border Interoperability
   The wallets will enable seamless access to services across EU Member States, fostering greater mobility and economic integration. For example, a user could open a bank account in another country or enroll in a foreign university using their EUDI Wallet.
2. Enhanced Privacy and Security
   With features like selective disclosure and zero-knowledge proofs, the wallets will minimize data exposure and protect against identity theft. This will build trust in digital services and encourage wider adoption.
3. New Business Opportunities
   The wallets will create opportunities for businesses to develop innovative services that leverage secure digital identities. For instance, companies could offer personalized travel experiences or streamlined healthcare services.
4. Integration with Emerging Technologies
   The wallets could integrate with blockchain and AI technologies to enhance security and functionality. For example, blockchain could be used to ensure tamper-proof records of transactions.
5. Expansion Beyond the EU
   The success of the EUDI Wallet could serve as a model for other regions, promoting global standards for digital identity and fostering international collaboration.

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