For too long, we’ve dreamed of the day when we finally had a completely reusable, portable digital identity. It has continued to dangle in front of us like a carrot on a stick. We're told it's the future: seamless online experiences, effortless access to services, and greater control over our personal data. The reality? We complain constantly about the login and password systems. The never-ending verification gauntlets turn us into a class of digital serfs rather than empowered citizens. Why isn't it working yet?
Too Many Wallets, Too Little Trust?
The stats are compelling. In fact, KuppingerCole estimates a tremendous 2.6 billion addressable population for user-held digital identity worldwide. That’s a lot of potential users! And they forecast 400 million new credentials issued each year starting in 2026. I think we're missing a crucial element: trust.
Think about it. Are you really willing to pre-fill a new, untested digital wallet with all your personal, PII-laden data? Particularly when you have mission systems you’ve already established trust in and use daily. That's where enterprise IAM comes in. I believe Enterprise IAM, with its established user base and robust security infrastructure, can provide that much-needed bedrock of trust.
The challenge is not the technology itself but rather the complex ecosystem, including the absence of a single, universal, trusted source of truth. The reality is that the proliferation of digital wallets – potentially hundreds, as the article states – is a recipe for confusion. Now picture trying to explore that same city with hundreds of different currencies, each one only accepted at a few retailers. That’s the interoperability nightmare we're facing.
EUDI Wallets: Europe's Chance to Shine?
Europe has a genuine opportunity to set the standard here, not least through the EUDI wallet proposal. I'm Irish, and I'm genuinely excited about the prospect of a single, government-backed digital identity that I can use across the EU. It would simplify everything, from seeking services in the Spanish healthcare system to opening a bank account in Germany.
Even with EUDI wallets, the challenge remains: how do we achieve widespread adoption and ensure interoperability? How we get there The answer, I hold, lies in capitalizing on the burgeoning infrastructure and expertise of enterprise IAM. These systems already track the identities of millions — if not tens of millions — of employees and customers. When you think about it, why not do more and extend that functionality to allow support for reusable digital identities.
This fight isn’t merely over convenience, it’s over data sovereignty. In a world where our personal data is constantly being harvested and monetized by tech giants, reusable digital identities offer a way to take back control. Now, picture being able to share just the right information required to complete a particular transaction. Don’t worry—you won’t have to turn over your whole digital life! That's the promise of verifiable credentials, and it's a promise worth fighting for.
US "Yellow Zone": A Wake-Up Call?
Trinsic’s ” Digital ID Opportunity Zones in 2025 ” has put the U.S. in the “yellow zone” on the cusp of digital ID adoption. This ought to be a wake-up call for advocates and policy-makers alike. The piecemeal approach, with every state having a different mobile driver’s license (mDL) rollout, just isn’t cutting it. A whole-of-government US strategy should take shape, and it should learn from Europe’s positive examples and avoid Europe’s missteps.
It’s not resources, and it’s not just technology, either—it’s mindset. Americans are rightfully concerned about government involvement in digital identity, and the risks to privacy and government overreach that can come with a government-operated ID. I think there's a growing realization that we need a secure, privacy-respecting digital identity framework to compete in the global economy.
Think about the implications for businesses. Fortunately, with more than 143 million companies around the world, the pool of potential relying parties is huge. However, businesses are unlikely to adopt reusable digital identities if they do not trust the underlying infrastructure. Enterprise IAM can provide that trust, offering a secure and reliable platform for verifying identities and managing access to resources.
Position reusable digital identity as an option for enhancing privacy. So stop viewing it as a threat! We can build a safer and more reliable digital environment by empowering people with more control over their data.
Biometrics: The Final Frontier?
The discussion around biometrics is particularly interesting. Allowing users to store biometric templates on their devices to increase security and privacy is a no-brainer. Dock Labs shared a particularly interesting concept at EIC 2025. Their ideas included using biometrics and delegating the use of VCs to build greater trust and assurance among enterprise identity ecosystems.
Let's be honest: biometrics raise serious privacy concerns. People are rightly skeptical about sharing their biometric data, particularly when the technology could be so easily misused. That’s why it’s very important that we focus on bringing privacy preserving technologies into the fold. First, on-device biometric matching removes the need to store biometric data anywhere other than on that device.
Ultimately, the success of reusable digital identity will come down to one thing – can we build trust. We require a new framework that’s secure, privacy-positive, and consumer-friendly. Enterprise IAM helps to realize that potential. It provides the standards, protocols, and collaborative development environment needed to provide ubiquitous, secure, user-controlled digital identity. Enough with the future talk, let’s go build it — and one secure identity at a time.
