For some years now, many countries have either deployed or are experimenting with highly integrated digital identity systems that would allow the government to be more efficient. In fact, you are likely to be already using a form of digital identity if most of your financial transactions are cashless.
In many countries, identity verification is crucial for accessing numerous government services. You may find it difficult to access essential public services such as banking, healthcare and transportation if you do not possess a identity that can be verified by the authorities.
Governments around the world are rapidly adopting digital identity systems to streamline citizen identification. They purport to their citizens that digital systems will help to reduce fraud and improve service delivery.
However, what does the technological advancements mean for the average citizen? Does digitizing identities really benefit the citizen or is it just another means for authorities to track and monitor the activities of people? Will we see a day where our access to the Internet will require a mandatory digital identity login?
What is a Digital Identity?
Let’s first gain a broad understanding of what is digital identity.
Digital identity is basically the electronic representation of individuals, which enables them to prove who they are.
Identification can take many forms e.g. biometric data (fingerprints, facial recognition or iris scanning), cryptographic keys or digital ID cards. Unlike paper-based IDs, digital identity systems are designed for seamless integration with government and private services. They can make identity verification faster and more efficient.
Key Technologies Powering Digital Identity
Governments may use a range of technologies to build secure digital identity systems. Here are the most common ones that you may have already utilized or heard about:
Biometric Identification
You are likely to have already come across systems that identify you via your fingerprints, facial features or iris scans. Banks and immigration departments are known to use this type of identification system, which have proven to be highly efficient.
Smart ID Cards
You might be surprised to find out that Malaysia have been using digital ID cards for decades. The digital cards help to identify the different classes of citizens, permanent residents and temporary foreign workers. These smart cards can store encrypted personal data such as name, nationality, age, race, religion, employment status, etc.
Blockchain Based Digital Identity
Although not widely used yet, governments are exploring the potentials of utilizing a decentralized and tamper-proof blockchain network to better serve and monitor citizens. Some known examples are Sovrin Network and World Economic Forum’s digital ID initiative.
Mobile Based Digital Identity
Some countries have taken one step further in making digital public services more accessible to their citizens via mobile devices. For example, millions of Swedes rely on Sweden’s BankID for various essential services. Since 2018, Singapore’s Singpass app has enabled their citizens to conveniently access government services secured with biometric and passcode security systems.
Centralized Digital Identity System
Experts hope that cloud-based systems like the United Kingdom’s One Login will provide a more straightforward and secure way for people to prove their identity. The system will enable people to access government services without needing to present physical documents. At this point of time, the project rollout currently limits itself to only a handful of government departments. Thus only a very small fraction of the population accesses the system.
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The Extents of Digital Identity
Will Citizens Adopt Digital Identity?
Technophobes may resist embracing new technologies but a majority of citizens may adopt the use of digital identity systems if it prove to be easy to use.
We are already witnessing how even less tech savvy people love to use digital money because technologies such as NFC and PIN codes have made it so convenient to make payments. As app developers will concur, convenience is one of the keys to success if you want mass user adoption.
Therefore, a highly integrated, seamless and accessible digital identity system could prove to be very enticing to citizens. Just for instance, a system that can free users from having to remember passwords can be attractive. A system that can also guarantee against identity theft will also be very appealing to those who keep a lot of digital money.
Impact of Digital Identity Systems on Citizens
Going digital certainly presents a host of benefits but it is also wise for citizens to consider the risks and pitfalls of embracing an even more digitized life that extends to their very identity.
Let’s first talk about the benefits that citizens can enjoy if their government digitize public services:
Digital Identity Benefits
- Convenience and Accessibility:
Digitization usually means less physical paperwork and automation. Hence, the people would welcome digitization if they can speedily access public services without needing to endure through painstaking identity verification processes. - Improved Security:
Biometric authentication and cryptographic encryption have proven to be highly effective against combating fraud and forgery. These technologies can thus also serve the citizens very well in preventing identity theft. - Faster Government Services:
People in modern society do not enjoy waiting in line, especially if they are in a busy government department. For instance, speedy processing is particularly crucial on routes where high volume of workers cross the border daily to enter into a neighboring country to go to work. The Malaysia-Singapore border and some parts of European Union are some examples where a speedy digital identification system will be beneficial. - Financial Inclusion:
A significant population of people around the world remains unbanked which prevents them from benefiting from financial assistance. Thus, a simple but efficient digital identity system would allow the unbanked citizens to access public services that can help them improve their standard of living. Some people even hail Bitcoin as a promising solution that will help the unbanked to participate in the global economy.
Digital Identity Pitfalls
On the other hand, going digital comes with its own set of risks and pitfalls. Have we not all encountered a host of problems from embracing a more digitized life?
- Privacy Issues:
Data security is one of the top concerns of going digital. Governments and companies have been monetizing data harvested off people but only a trickle of the profits benefit the people. Weak enforcement of data privacy laws is one of the causes for this issue to remain prevalent. - Cybersecurity Issues:
No digital system in the world can be totally secure from hackers, phishing or malware. If you rely on a digital identity that seamlessly connect to numerous online services, a security breach would allow the hackers to steal your identity and execute malicious acts using your identity. Millions of stolen citizens’ identities could potentially cause catastrophic effects. - Exclusion of the Unconnected:
Governments are suppose to serve all their people, so going digital extensively risk locking out people who do not have access to the Internet. Technological changes can particularly leave the elderly citizens vulnerable to being left out of essential public services as they are generally known to be inept to technology. - Government Overreach and Control:
Many countries around the world are governed by democratic systems that grant much freedom to the people. Therefore, a thorough digital identity system that restricts freedom can cause significant social unrest. Social scoring system like the one enforced by the Chinese communist government is not likely going to be favorable with citizens who are used to enjoying high degrees of personal freedom.
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Conclusion: The Uncertain Future of Digital Identity
On the surface, it does seems to look like we are heading into a future where user-controlled digital identities will eventually become the norm. For instance, have we not gotten used to managing our money via self-service e-banking?
However, there are much hurdles to overcome before we can enjoy living in a world where digital identity systems encompass all aspects of our lives. For starters, governments must somehow strictly enforce data privacy laws. Cybersecurity issues and the need for inclusivity for all people must also be thoroughly considered.
To give citizens control over their own identity would mean the citizens must learn to practice cybersecurity habits. This means the citizens must be willing to learn a new skill, which can be a frustrating thing to do for older citizens who are resistant to changes.
What about you? Would you feel comfortable with a fully digital identity?
