The transition from traditional ID cards to digital IDs has begun, with fourteen U.S. states having adopted these digital credentials and others exploring their feasibility. The European Union has also initiated steps to offer digital IDs to member states. These IDs, stored in digital wallets on smartphones, can quickly verify government-issued identities in person and online.
While digital IDs simplify identity verification, they could also lead to privacy concerns. They could easily be tracked, allowing retailers and others to request them frequently. "Unlike traditional physical ID cards, by default, digital credentials leave electronic trails," which can be misused for commercial purposes or become vulnerable to theft and fraud.
Digital ID systems may record each instance an ID is presented, potentially creating a central record accessible to governments or contractors. The accessibility of these systems is questionable, as not everyone may possess the necessary technology or ability to use it. "Technology for instant ID verification makes it much easier for companies to exclude people they don't want to serve," based on various demographic factors.
U.S. states are developing digital ID systems independently, lacking federal coordination, while industries advocate for these systems to streamline operations. However, a rushed implementation could fail to protect privacy and ensure accessibility.
James Monahan, of the Center for Democracy and Technology (CDT), stated, "CDT was recently invited to participate in a meeting hosted by the Better Identity Coalition," which aims to design secure digital ID systems. Monahan emphasized "ensuring users will be protected by systems that put privacy and security at the center."
CDT is collaborating with Georgetown's Beeck Center to create guidelines for digital identity management, ensuring ongoing access to government benefits for those unable to use digital systems.
The adoption of digital IDs appears inevitable, but ensuring these systems are safe and equitable requires coordination among corporate, government, and civil society stakeholders. The objective is to prevent "annoying, harmful, and discriminatory outcomes" and to assure that digital IDs are beneficial rather than harmful.