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May 27, 2025
Security & Privacy
3 minutes

Why Security & Privacy Matter Most in EU Digital Identity

Why Security & Privacy Matter Most in EU Digital Identity
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Protecting security and privacy is at the heart of Europe’s digital identity initiatives.\

Why Security & Privacy Are Central to Digital Identity

The European Union's push for secure digital identity systems is governed by the strong foundation of personal data protection established by the General Data Protection Regulation (GDPR) and the updated eIDAS Regulation. The objective is to ensure that individuals' digital identities can be used safely across borders, with the same confidence as face-to-face interactions.

EU Legal Foundations for Security and Privacy

The GDPR sets clear rules for handling personal data, requiring organisations to implement measures like pseudonymisation, encryption, and access controls. Any processing of personal and sensitive information used for identification—such as with the upcoming European Digital Identity Wallet—must comply with these standards. The revised eIDAS 2.0 framework introduces requirements for high-level assurance of electronic identification, aiming to protect users from identity theft and unauthorised use.

Practical Security Requirements

EU official guidance stresses the importance of several technical and organisational measures for digital identities, including:

  • Strong authentication: Multi-factor authentication (MFA) is expected for accessing eID and digital wallets.
  • End-to-end encryption: All communications and stored sensitive data should be encrypted, safeguarding it from interception or leaks.
  • Tamper-resistance: Devices and software that handle digital identities must resist attempts to alter or forge credentials.
  • Continuous monitoring: Systems should monitor for anomalous behaviour, signalling potential breaches instantly. These requirements are designed to help both individuals and businesses trust that their data and identities are being protected according to the highest standards.

Privacy by Design

From the earliest stages, EU regulations demand that privacy is built into every digital identity solution. This means systems must minimize the amount of personal data collected and ensure that it's only used for clear, legitimate purposes. For example, the upcoming EU Digital Identity Wallet is being designed so users remain in control of their data, deciding which attributes to share with which services.

Real-World Example: Cross-Border Healthcare

Consider cross-border healthcare access. With secure, privacy-centric digital identities, EU citizens travelling in another member state could consent to share only relevant health records with a foreign doctor. Hospitals would verify their identity and access medical data, but only with permission and solely for treatment—fulfilling the GDPR's purpose limitation principle.

Continuous Auditing and Independent Oversight

The eIDAS 2.0 framework calls for regular security audits and oversight by independent EU bodies such as ENISA (the EU Agency for Cybersecurity). These audits check compliance with security, privacy, and interoperability requirements, strengthening trust across all member states.

Summary

Security and privacy are not just technical requirements for EU digital identity—they are legal obligations and foundational to public trust. By embedding robust protection, transparency, and control at every stage, the EU aims to create a digital identity system that is both safe and empowering for everyone who uses it.

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