🇪🇺 EU · Key Regulation
European Digital Identity (EUDI)
The European Digital Identity Framework, introduced through eIDAS 2.0 (Regulation (EU) 2024/1183), modernises the EU's framework for electronic identification and trust services.
In this briefing
- What it is
- What does the EUDI Framework do?
- Key things to know
Its centrepiece is the European Digital Identity Wallet (EUDI Wallet)—a secure digital wallet that will allow individuals and businesses to store, manage and share verified digital credentials issued by governments and trusted organisations.
Unlike traditional identity verification, where users repeatedly upload documents to every service provider, the EUDI framework enables reusable digital credentials that can be selectively shared while giving users greater control over their personal data.
The framework is intended to become common digital infrastructure across the European Union, supporting identity verification, authentication, electronic signatures, payments, banking, regulated onboarding, education, healthcare and many other digital services.
What does the EUDI Framework do?
Creates a European Digital Identity Wallet
Requires every Member State to provide at least one EUDI-compliant digital identity wallet that individuals and businesses can use across the EU.
Standardises Digital Identity
Creates common technical and legal standards for digital identity, authentication and trust services, allowing credentials issued in one Member State to be recognised across the Union.
Introduces Verifiable Credentials
Allows trusted organisations to issue digital credentials for identity, professional qualifications, education, company representation, licences and other verified attributes that can be reused across multiple services.
Enables Selective Disclosure
Users can prove specific attributes—such as age, residency or company authority—without sharing unnecessary personal information, supporting both privacy and data minimisation.
Supports Digital Trust Services
Expands and modernises the EU framework for electronic signatures, electronic seals, timestamps, website authentication and other trust services that underpin digital transactions.
Creates Common Digital Infrastructure
Provides a trusted identity layer that can support regulated onboarding, financial services, payments, crypto, healthcare, education and public-sector services across the EU.
Key things to know
EUDI is much more than a digital identity wallet
The wallet is only one component of a much broader trust infrastructure. The framework establishes common rules for electronic identification, verifiable credentials, authentication and trust services that will underpin digital interactions across both the public and private sectors.
KYC and onboarding may fundamentally change
Instead of repeatedly collecting and verifying identity documents, firms may increasingly receive trusted digital credentials directly from users. This has the potential to reduce onboarding friction, improve verification quality and lower operational costs, although regulated firms will still need to assess whether additional due diligence is required.
Businesses will need to integrate with the ecosystem
Banks, payment providers, crypto firms, telecommunications providers and other regulated sectors will increasingly need to support EUDI Wallets for identity verification and authentication. Integration will require both technical implementation and operational changes.
Identity becomes reusable and programmable
Verified credentials can be requested, validated and shared digitally without repeatedly performing manual checks. This enables more automated onboarding, access controls and compliance workflows while giving users greater control over which information they disclose.
The framework complements existing regulation
EUDI does not replace AML, GDPR, MiCAR, PSD3, DORA or the AI Act. Instead, it provides trusted identity infrastructure that can support compliance with these frameworks by improving identity assurance and reducing reliance on paper-based verification.
Digital identity will become a competitive advantage
Organisations that adopt reusable digital identity early are likely to benefit from faster onboarding, lower verification costs, improved customer experience and stronger fraud prevention. Over time, EUDI is expected to become core infrastructure.
For general information only. Not legal, regulatory or compliance advice.
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