How does the European digital wallet work and do you need it

05 March 2024, 19:37 | Finance and Banking
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The other day, the press service of the Ministry of Digital Transformation reported that the Cabinet of Ministers adopted a resolution creating the prerequisites for the introduction of the European digital wallet in Ukraine. In the future, this solution gives a start to the development of the field of electronic identification and the introduction of new means of electronic identification with different levels of trust.. Therefore, you need to figure out what it is.

The European Digital Wallet (EUDIW) is one of the systems for the future single digital space of Europe. With its help, economic transactions that require personal identification (and in the future all transactions will be so) can be simplified and significantly accelerated. First of all, thanks to the ability to upload your data through a special application for smartphones and other devices. This applies to both primary information (name, date of birth, citizenship) and more complex data about the rights to drive vehicles, own property, financial information, etc..

Once the data is stored in the wallet, EU citizens, residents and businesses will be able to exchange this information online and offline to confirm rights to work, reside, study and other activities within the European Union.

The full list of considered use cases for a digital identity wallet is quite long.. This includes secure access to government services and identity verification in online banking or when registering a SIM card.. You can transfer your driver's license online if you lose it or leave it at home.

Also, the European Digital Wallet can be used to create a digital signature, confirm travel documents, confirm education for employment, obtain information about social security benefits, etc..

From April 1, 2023, four large projects were started to test the system before implementation. 25 EU countries, as well as Ukraine, Norway and Iceland took and will take part in them. Each country tests its own set of functions.

For Ukraine, using a digital identification wallet provides: access to e-government services, opening a bank account, registering a SIM card, mobile driver's license, electronic signature, electronic prescription and account-to-account payments.

“So essentially this is our “Diya”! " Indeed, EUDIW is an analogue of the “Diya” service, only it provides for end-to-end data exchange within the entire EU, and not just one state. Therefore, it is quite logical that the Ministry of Digital Transformation is involved in the implementation of this project in Ukraine. And yes, with us it is based precisely on the electronic service “Diya”.

Actually, this will significantly facilitate the process of our digitalization within the EU, because all we need is to integrate “Diyu” into EUDIW. Moreover, our specialists were involved in the development of EUDIW, since they already have developments and solutions that can significantly accelerate the development of this service in the EU.

This means that in the future, Dii services can be easily obtained within the EUDIW system, that is, in EU countries. And citizens of EU countries will be able to receive services in Ukraine through the European digital wallet. Therefore, it is “Diya” that will become the entry point into the single digital space of the European Union.

It is difficult to say now how much time is needed for the process of combining systems.. On March 1, the European Parliament has already voted to adopt a law on a digital identity wallet. For the law to be finally adopted, it must be approved by the EU Council of Ministers.

It is unlikely that any problems will arise here, since the law has received widespread support.

In Ukraine, relevant legislative decisions are also being made. On February 27, 2024, the Cabinet of Ministers approved a resolution on the development of the field of electronic identification. This is another step forward. Everyone understands that this is a complex process, but judging by the pace of implementation, we are talking about a short period - no more than a few years.

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