Over the past few years, the digitization of services in the public and private sectors has significantly increased. Individuals are now able to access essential services through the use of digital identities (IDs).
A digital ID authenticates a person’s identity online and helps them access a range of services via the web or on a mobile app. According to McKinsey, digital IDs can generate economic and social advantages for governments, as a low-cost method with high potential for inclusion.
As of August 2020, governments have launched around 165 digital or partially digital ID policies around the globe.
If you're wondering what exactly a digital ID is and how it can benefit municipal governments, this article will help with everything you need to know.
What Is a Digital Identity?
Digital identities are the alternative to physical identification credentials, like an ID card, passport, health card, or driver's license. Identity holders can use digital IDs to prove their identity to employers, financial institutions, and government agencies online. Simply put, a digital ID conveniently and effectively validates that a person is who they claim to be when accessing services via digital channels.
In June 2021, the European Union proposed a framework for Digital ID acceptance. The program will be available for all EU citizens and businesses and helps governments carry out their activities more efficiently across public and private sector departments.
Digital ID Wallet
During the pandemic, COVID-19 health passes helped people gain access to services without any physical contact. A good example was the "digital vaccination cards" developed by the UK government.
A similar "Digital ID Wallet" concept has been adopted by many large organizations like Thales, Apple, and Adobe.
The digital wallet gives people an easy, safe, and convenient way to control their data. Moreover, it also lets individuals decide with whom they want to share their personal information.
Thales' Digital ID Wallet is a Mobile ID that provides users with a safe platform that holds and protects all their digital identity credentials on their smartphones. Where the digital ID wallet establishes a trustworthy all-in-one identity gateway for citizens, it also lets governmental authorities create trusted partners to issue, manage, and verify physical identity documents. This boosts efficiency and helps mitigate fraud.
Similarly, in June 2021, Apple also introduced its new digital identity card that connects to the Apple Wallet.
Users must first add their driver's license or national ID card to their Apple Wallet to create a digital ID card. This ID is fully encrypted and stored in Apple's Secure Element to maintain the user's data privacy.
People can use this new digital ID at airport security checkpoints, and to store their digital passkeys, house, hotel or office keys alongside their digital ID in their Apple Wallet.
The entry of Apple into the digital ID space has led to a push to finally convince governments to establish standards for the use of digital IDs.
How Can Digital IDs Facilitate Municipal Governments?
Digital IDs can simplify communications between citizens, governments, and businesses; a smooth interaction system makes way for a more effective municipal government that works for the betterment of its state or region.
Benefits for Citizens and Government
Digital IDs benefit citizens with convenient and easy access to a variety of public services, from healthcare, certifications, welfare payments, and different licenses.
Moreover, they also help save on commuting costs and reduce wait times at service points that commonly frustrate citizens.
This technological revolution can help open up municipal governments to enhanced administrative capabilities. Governmental officials can boost their efficiency due to reduced paperwork, faster processing, and minimized risk of identity fraud.
Citizens can also gain the ability to vote through their digital IDs without having to physically go to the voting booth.
Benefits for Businesses and Government
Digital IDs not only benefit citizens but also smooth interactions between the private sector and governments. These digital IDs can help incorporate registrations, tax filing, permit issuance, and authorizations.
Online relations between both entities support compliance regulations and offer safe ways to perform background checks and verifications. Moreover, digital IDs also reduce costs and create a trustworthy environment.
Governments must retain control over the digital ID framework and include businesses directly rather than outsourcing to third parties.
The Current State of Digital IDs Worldwide
Many countries are finding their way toward digital authentication, including the USA, Australia, Canada, and Bangladesh.
One example of digital ID wallets is Florida's mobile driving license, Florida Smart-ID. The app allows motorists to scan a QR/barcode from their smart devices and verify themselves.
The same is the case in Queensland, Australia, where the government is set to open a digital ID system for the private sector.
This Digital Identity Legislation will safeguard the privacy of many activities, including limiting access to citizens' biometric information. The Digital Transformation Agency (DTA) has been working with myGovID (developed by the Australian Taxation Office) to introduce a digital identity system in Australia.
myGovID consists of a unique digital identity for every citizen that can be used to access specific online services such as myGov, the government's online portal which consolidates all online services in one place.
The government of Pennsylvania also came up with a REAL ID-compliant system, rolled out in May 2023. Citizens now need a digital driver's license, ID card, passport, or military ID to board a domestic or commercial flight and enter federal buildings.
In 2019, the ID2020 Alliance and Government of Bangladesh also launched a program to establish a digital identity with vaccines.
Similarly, Johnstown Police Department officers also started accepting Colorado Digital ID within the myColorado mobile app to validate an individual’s identity, age, and address during routine traffic stops in March 2021.
How to Establish a Digital ID?
In Ontario, Canada, the government launched a Digital Identity Program to facilitate the digital authentication of citizens and provide them with accessible online services.
To establish a digital ID through Ontario's digital identity program, citizens must follow the below steps:
- Download the Ontario digital wallet app on a smartphone or computer.
- Create an account and verify their digital ID online or in person.
- Add their ID card and required credentials to the digital wallet.
- Finally, the digital ID is now active and can be used to verify the individual’s credentials and access services.
No matter where you live, the steps to establish a digital ID should follow a similar process.
Thanks to the pandemic, digitization has accelerated around the globe. The use of digital IDs is essential to expanding access to government services and helping to build trust while minimizing fraud risks.
The Portage CyberTech Solution: Credential Engine
Portage CyberTech's CitizenOne, a trusted framework that speeds up service delivery, includes a component called Credential Engine which offers a portable, scalable, and user-centric solution for issuing and verifying credentials in a hybrid world.
With this trusted platform that is based on blockchain technology and adheres to Pan-Canadian Trust Framework (PCTF) principles, governments and regulated organizations can streamline credential issuance while maintaining privacy and security.
By empowering citizens and users with greater control over their digital identity, the Credential Engine enables them to hold verifiable credentials in a trusted digital wallet with zero-proof mechanisms.
This user-centric approach enhances trust through increased transparency and security. Recipients gain ownership of their official records, such as driver's licenses or healthcare identifiers, in a digital format that can be cryptographically presented anywhere for verification of provenance and ownership.
Embrace the future of digital identity with CitizenOne's Credential Engine and revolutionize the way your organization manages and trusts credentials in the digital world.
Contact us today and maximize your online service adoption by consolidating all your digital services on one user-friendly dashboard.