The new European EUDI Wallet. What it is and how it works

The EUDI Wallet is here, set to transform how citizens and businesses manage their digital identity in the EU. With eIDAS 2.0 coming into effect on May 20, 2024, this digital wallet becomes the cornerstone of European electronic identity, enabling secure storage and sharing of verifiable credentials without intermediaries. Its adoption will be key to regulatory compliance and ensuring interoperability in an increasingly demanding digital ecosystem.

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ith the introduction of eIDAS 2.0, an enhanced version of the original 2014 eIDAS regulation, compliance requirements now extend to all stakeholders involved in digital identity management, from public administrations to private enterprises. Ensuring compliance not only guarantees the legality of digital processes but also facilitates the adoption of emerging technologies, such as digital identity wallets, improving user experience and reducing fraud-related risks. 

For businesses handling digital identities—particularly those operating under stringent regulations in sectors such as finance, education, or healthcare—adapting to this framework is not optional. It is essential for maintaining competitiveness and delivering more secure and transparent services in an increasingly demanding market. 

What is the European Digital Identity (EUDI Wallet)? 

One of the key pillars of eIDAS 2.0 is undoubtedly the EUDI Wallet. This digital wallet will enable citizens and businesses to store and manage verifiable credentials on their mobile devices, including official documents such as: 

• Digital ID card or passport 

• Driving licence 

• Academic credentials and professional certifications 

• Banking and financial data 

The EUDI Wallet will be available to all EU citizens by 2026 and must be accepted across all Member States. Its primary goal is to provide a secure and decentralised alternative to traditional authentication models, reducing reliance on private intermediaries and ensuring that users have full control over their data. 

European digital identity wallets aligned with eIDAS 2.0 must meet a set of key requirements to guarantee security, privacy, and accessibility. In summary, they must be free of charge for end users, offer qualified electronic signatures at no cost, be open-source to ensure transparency, maintain a high level of security (Level of Assurance High) to prevent fraud, and ensure non-traceability, preventing third parties from tracking citizens’ use of credentials. 

The major challenge in implementing the EUDI Wallet is achieving the ambitious goal of having at least 80% of the European population using one of these digital wallets by 2030. This requires not only the development of robust technologies but also the trust and adoption of citizens, businesses, and governments. 

In this context, Self-Sovereign Identity (SSI)-based solutions like TrustCloud Wallet ensure compliance with the principles of eIDAS 2.0, providing a digital wallet that meets the regulation’s security and privacy requirements. TrustCloud Wallet enables the secure storage and sharing of verifiable credentials, facilitating the adoption of the European Digital Identity for both citizens and businesses. 

Stricter security and privacy requirements 

With eIDAS 2.0, the EU is strengthening personal data protection and the security of digital transactions. Key measures include: 

• Mandatory Multi-Factor Authentication (MFA) to ensure that only the legitimate holder can access their digital identity. 

• End-to-End Encryption to prevent unauthorised access to information stored in the EUDI Wallet. 

• Data Minimisation Principle, allowing users to share only the information strictly necessary for each transaction, without exposing additional data. 

• Zero-Knowledge Proofs (ZKP) to validate personal attributes without revealing sensitive information (e.g., proving you are over 18 without disclosing your date of birth). 

These requirements make digital identity in Europe more secure and reliable than ever, preventing fraud and ensuring users have full control over their data. TrustCloud Wallet meets these standards by offering advanced encryption, secure authentication, and identity management tools designed to guarantee user privacy. 

Expansion of scope: focus on sensitive sectors 

eIDAS 2.0 extends the reach of the regulation, covering more sectors and services that require digital identification. Key impacted areas include: 

• Financial and banking services, where identity verification is crucial for account opening and contract signing. 

• Digital healthcare, enabling secure access to medical records and authentication within healthcare systems. 

• Education and professional certifications, facilitating Europe-wide validation of degrees and diplomas. 

• E-commerce and digital platforms, strengthening user authentication security. 

• Public administrations, which will be required to adopt the EUDI Wallet to manage digital interactions with citizens and businesses. 

This expansion means that a growing number of organisations must adapt to eIDAS 2.0 to ensure regulatory compliance. TrustCloud Wallet supports businesses in this transition by providing a compliant, multi-sector solution that seamlessly integrates verifiable digital identities into any digital process. 

Request a demo of TrustCloud Wallet now 

Electronic signatures and their interoperability within the EU 

One of the key advancements of eIDAS 2.0 is the standardisation of qualified electronic signatures, which will now be integrated into the EUDI Wallet and can be used across any EU country without the need for additional validations. This will enable citizens to sign contracts, approve documents, or carry out digital transactions with the same legal validity across all Member States. For businesses, this translates into reduced costs and time associated with managing digital documents and agreements. 

How to prepare for compliance with eIDAS 2.0 

To adapt to the new regulation and ensure continuity in digital services, businesses must take strategic action in several key areas: 

• Assessment of current infrastructure and potential gaps 

The first step toward compliance is to conduct a thorough assessment of existing identity management systems. Businesses need to identify potential gaps in terms of security, interoperability, and regulatory compliance with the new eIDAS 2.0 requirements. 

• Implementation of verifiable identities and compatible wallets 

Organisations will need to update their systems to accept and manage verifiable credentials issued by the EUDI Wallets. This involves adopting decentralised authentication solutions and ensuring that internal processes are compatible with the interoperability standards defined in eIDAS 2.0. 

• Regulatory compliance and security measures 

The new regulatory framework requires that the implemented digital solutions meet the highest security standards, including data encryption, access management, and fraud prevention. Businesses will need to ensure that their infrastructure aligns with these requirements to avoid penalties and maintain user trust. 

The arrival of eIDAS 2.0 represents a fundamental shift in the management of digital identities within the EU. For businesses, adapting to this new framework is not only a legal obligation but also an opportunity to enhance security, efficiency, and trust in digital services. 

Partnering with Trust Service Providers like TrustCloud can accelerate the adaptation process by providing a platform compatible with eIDAS 2.0, ensuring a smooth transition.

Is your company ready to comply with eIDAS 2.0? Find out how TrustCloud can help you integrate verifiable digital identities and ensure regulatory compliance. 

Request a demo of  TrustCloud Wallet today