Digital Identity in Latin America: Panama’s E-Cédula vs. Argentina’s QuarkID

Two new digital identity projects in Latin America, Panama’s e-cédula and Argentina’s Self-Sovereign Identity (SSI)-based system known as QuarkID, represent contrasting approaches to digital identity management. They highlight the risks of centralisation versus the benefits of decentralisation and citizen control.

I

mplementing digital identity systems can enhance the efficiency of public services, but it can also pose significant risks to individual freedoms, depending on the approach taken. A centralised identity system, such as Panama’s e-cédula, gives a single government entity full control over citizens’ personal data. This concentration of power can threaten privacy and autonomy, exposing citizens to risks of power abuse and potential security breaches where all personal information could be compromised. 

In contrast, the Self-Sovereign Identity (SSI) approach adopted by Argentina through QuarkID promotes a decentralised system that safeguards individual freedoms by giving each person control over their own information. 

In a context of increasing digital surveillance, decentralisation not only ensures that users retain control over their identities, but also reduces security risks by distributing responsibility across the network rather than centralising it in a single entity. The choice between a centralised system and one based on SSI is not merely a technical decision; it is a critical stance on defending citizens’ digital rights and freedoms. 

We explore the details and potential impact of these two significant projects. 

The Panamanian Digital ID Card (E-Cédula): a system overseen by the Electoral Tribunal 

The Panamanian e-cédula has been introduced as a modern tool for citizen identification, integrating a digital ID system aimed at facilitating government procedures and improving access to public services.  

The digital ID is available through a mobile app, initially only on Android devices. To use the digital ID, users must complete facial biometric verification and a liveness test. The app also includes a security feature that prevents screen captures or recordings to avoid the risk of document cloning. 

However, its centralised approach raises serious concerns regarding data privacy and security. Granting a single government body full control over personal information can be a double-edged sword, where data management efficiency collides with the risk of potential power abuse. 

Panama’s proposed digital identity system is overseen by the Electoral Tribunal (Tribunal Electoral, TE), which is also responsible for issuing national identity cards. 

The TE is Panama’s official body responsible for regulating and supervising electoral processes across the country. Its core mission is to ensure transparency, fairness, and legality in conducting elections and other citizen participation activities. Among its functions are organising general elections, managing the electoral register, and overseeing political parties and their funding. 

Furthermore, it is in charge of issuing identity documents, such as national ID cards. In recent years, the TE has taken steps to modernise its infrastructure and services, aiming to meet the needs of an increasingly digital population, thus playing a key role in the e-cédula project. 

There is no data in the published reports that suggests this project decentralises data. This concentration of control serves as a red flag, highlighting a significant risk of vulnerability and potential abuse of power. 

Centralising identity data not only increases citizens’ exposure to security breaches but also raises concerns about excessive monitoring and potential manipulation of personal information. The lack of individual autonomy over one’s own data calls into question essential principles of privacy and informed consent. Additionally, a single point of failure could have severe consequences: a cyberattack on the managing entity could compromise the identity of millions of Panamanians, exposing them to fraud and other crimes. 

With these concerns in mind, the need for an alternative approach is evident. 

QuarkID: a decentralized approach to Digital Identity in Argentina 

In response to the challenges posed by centralised systems such as Panama’s e-cédula, Argentina has developed QuarkID, an innovative digital identity protocol grounded in the principle of self-sovereign identity (SSI). 

Self-sovereign identity (SSI) is a term used to describe a digital model that empowers individuals to own and control their identity without administrative authority intervention. SSI enables people to interact in the digital world with the same freedom and confidence as in the physical one. 

The QuarkID initiative, spearheaded by the Government of the City of Buenos Aires (GCBA), aims to empower individuals by returning control over personal information and ensuring privacy. According to the official QuarkID account on X, the GCBA has become the world’s first government to incorporate blockchain technology into its digital identity system. 

QuarkID represents an innovative model of SSI in Argentina, implemented primarily in Buenos Aires as part of the digital platform miBA. 

miBA: a comprehensive digital platform for Buenos Aires 

The miBA app, developed by the Government of the Autonomous City of Buenos Aires, provides citizens with a personalised platform for managing various services and administrative processes. This app facilitates tasks such as updating personal information, checking the status of applications, and verifying identity. Beyond administrative management, miBA offers features like deadline reminders and seamless communication between different government sectors, designed to improve user experience by reducing wait times and streamlining procedures. 

Launched officially in October 2024, QuarkID has extended control to over 3.6 million users, enabling them to manage personal documents in a secure, decentralized environment.  

QuarkID integrates as a secure access option for municipal documents and services, offering over 60 digital certificates, such as birth certificates and tax documents, which users can view, share, and verify without disclosing additional data. 

The motivation behind QuarkID is clear: to create a new paradigm where digital transactions are swift and secure, allowing users to decide where their information is stored and who has access to it. Rather than relying on centralised entities that control and manage data, QuarkID proposes a digital ecosystem based on trust and transparency. The decentralisation of identity control not only reduces the risk of abuse but also enhances efficiency in procedures by eliminating the need to present physical documentation. 

The aim is to facilitate a process where individuals can authorise third parties to verify their information through a secure channel, resulting in a significant reduction in wait times and transactional costs for organisations. Furthermore, by encouraging the creation of digital identities by public and private institutions, it is expected that the ecosystem will expand autonomously and sustainably. 

An open-source programme that will expand to other territories 

QuarkID is open source, which facilitates its adaptation in other provinces and countries interested in implementing a similar system. Open co-creation is fundamental to its success, leveraging the capabilities of local entrepreneurs and developers in technologies such as blockchain and zero-knowledge proofs. These technological advancements not only support the security of the system but also open new avenues for innovation in the realm of digital identity. 

The QuarkID project was recognised in September by the Digital Public Goods Alliance as a Digital Public Good, thus joining other significant open-source projects and constituting the first 100% decentralised digital identity protocol to receive this recognition. 

Decentralisation and the removal of bureaucratic structures that limit personal freedom are values that the Argentine government defends and promotes across all spheres of society. QuarkID fosters an environment of innovation and competition, values that are fundamental pillars for transforming the Argentine economy. 

Safe and democratic alternatives in the field of digital IDs

The comparison between Panama’s e-cédula and QuarkID highlights a critical decision in the digital age: finding the balance between efficiency in identity management and the protection of individual liberties. 

QuarkID represents a safer and more democratic alternative, where control over identity rests with the individual. In an increasingly interconnected world, where personal data is a valuable commodity, maintaining control over our identity should be considered a fundamental right. Adopting decentralised systems like QuarkID not only enhances user experience but also contributes to a safer and more reliable digital environment. 

It is vital that we are critical and well-informed about the digital identity systems we adopt and that any decisions regarding them are revocable. 

Contact our team and get to know TrustCloud Wallet, based on Self-Sovereign Identity