In building a strong digital infrastructure, there are three key elements: digital identity, digital payment systems, and mass data sharing. Digital identity, in particular, serves as the cornerstone. Ajay Banga, President of the World Bank, advocates for governments to take the lead in establishing digital identity platforms for their citizens.

Why? Because governments are better positioned to safeguard privacy and security compared to the private sector.

This recommendation stems from the belief that every individual deserves a digital identity that protects their privacy. Entrusting this responsibility to governments ensures that citizens’ rights are upheld. Banga’s remarks were made during the Global Digital Summit, where discussions revolved around accelerating digital development worldwide.

It’s not only a technological problem

It’s widely acknowledged that citizens should have digital identities, and these identities must guarantee privacy. However, achieving this isn’t solely a technological challenge; it’s a matter of governance. Without robust privacy measures in place, public acceptance of digital identity initiatives could be undermined.

Some experts argue that placing digital identity in the hands of governments could lead to better privacy protection due to their regulatory authority. However, others caution that government control could also pose risks, such as potential misuse of data or infringement on individual liberties.

In my opinion, Banga’s emphasis on government ownership of digital identity platforms is crucial. Governments have a responsibility to safeguard the rights and privacy of their citizens, making them the most suitable custodians of such systems. While the private sector may offer innovative solutions, the accountability and regulatory oversight provided by governments are crucial in guaranteeing trust and confidence in digital identity systems.

Without effective governance, the potential benefits of digital identity could be overshadowed by concerns over privacy and security.

However, achieving privacy and security in digital ID systems is not without its challenges. Issues such as privacy breaches and security risks, particularly in the age of generative artificial intelligence, need to be addressed effectively. This requires ongoing collaboration between governments, technologists, and other stakeholders to develop and implement robust solutions.

Governments embrace digital

Access to digital resources should be a fundamental right for everyone, regardless of their background or circumstances. After all, in the 21st century, it shouldn’t matter where you’re born or who you are… everyone deserves to be digitally included.

However, achieving digital inclusion is not without its challenges. One significant barrier is the lack of access to technology, with around 400 million people still outside the telecom grid. Affordability is another major hurdle, as many individuals struggle to afford devices or service plans. Additionally, usability plays a crucial role, with applications needing to cater to the diverse needs of society (whether it’s through digital education, healthcare, or financial inclusion.

But, while digital identity is undoubtedly important, it’s not the sole focus. Without first addressing the foundational issues of (electric and internet) connectivity and affordability, the benefits of digital identity may not reach those who need it most. This sentiment is echoed by a 2022 study from the World Bank, which highlighted that approximately 850 million people worldwide lack any form of physical ID.

It’s once again evident that addressing these challenges requires collaborative action. No single entity (be it government, NGO, or private company) can tackle the issue alone. I think it’s very important for stakeholders to work together to overcome barriers and ensure that digital opportunities are accessible to ALL.

Final thoughts

Transitioning from physical IDs to digital ones brings about fresh challenges for security and privacy.

Moving from physical IDs to digital ones comes with new challenges for security and privacy. With digital IDs accessible through smartphones and apps, there’s a broader risk of unauthorized access to personal data and photos that were once only available on secure department networks.

BUT HERE’S THE THING: It’s crucial to note that the transition to digital IDs shouldn’t stop at state/country borders.

It has to work everywhere, seamlessly. That means it needs to be compatible across different systems and states.

For digital IDs to be truly effective, they need to work seamlessly across different IT systems and state boundaries. This means overcoming technical hurdles within and between states, as well as establishing national standards for protocols.

Without it, there could be fragmentation and inefficiency, undermining the overall effectiveness and acceptance of digital IDs. It’s important to address these challenges proactively to build trust and confidence in the security and privacy of digital identity solutions.

Sources:

https://www.rebelnews.com/world_bank_pushes_for_government_control_of_digital_id

https://www.worldbank.org/en/events/2024/01/24/world-bank-global-digital-summit