European Parliament Promotes Strong EU Digital Wallet By Negotiating With Council
- The European Union’s proposal for a digital identification framework was approved in plenary by the European Parliament.
- The proposition received 418 votes in favor and 103 votes against in the plenary vote, with 24 parliament members abstaining.
- After talks with the council, the EU-wide digital identification framework is one step closer to becoming a reality with the plan passing the vote.
European legislators advanced the introduction of a European Union-wide digital wallet by voting in plenary to send the issue to interinstitutional discussions.
Citizens would have access to public services and their wallets under the EU-wide system. To safeguard consumers’ privacy, the law contains zero-knowledge-proof technology. ZK-proof safeguards privacy by validating a position without providing superfluous information.
According to a news release, the European Parliament agreed on March 15 to establish a mandate for negotiations with EU member states on amending the new European Digital Identity (eID) framework. The EU-wide framework is designed to give individuals with access to a variety of public services while protecting their privacy, with 418 votes in favor, 103 against, and 24 abstentions.
The decision comes as governments across the globe debate how to regulate cryptocurrencies amid worries that they might disrupt financial markets and encourage illicit activity.
With the plenary’s approval, the EU council is now ready to begin negotiations on the final version of the legislation right away, legislators added. The declaration states that the Parliament’s negotiating stance would be based on modifications approved by the Industry, Research and Energy Committee (ITRE) in February. According to the European Parliament:
“The scheme would allow citizens to identify and authenticate themselves online (via a European digital identity wallet) without having to resort to commercial providers, as is the case today – a practice that has raised trust, security and privacy concerns.”
The eID legislative proposal, which will be introduced in June 2021, proposes to establish a European Digital Identity and a dedicated digital wallet for EU residents and enterprises. The European Digital Identity Wallet, or EDIW, proposes to enable EU citizens and businesses to store identification data for cross-border usage.
With the introduction of digital wallets, the EU will expand its presence in the crypto sector in order to monitor crypto transactions and prevent criminal activity.
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