DIGITAL SME pleads for blockchain as a security tool for EU Digital Identity

  • The European Parliament’s latest vote on the electronic identification regulation removed blockchain and other “Electronic Ledgers” as trust services

  • Blockchain companies were snubbed and may miss a business opportunity to supply securitisation solutions for e-identity

  • Electronic Ledgers are effective against cyberattacks and they are present in Blockchain and Distributed Ledger Technologies (DLT)

The European DIGITAL SME Alliance, together with major IT and Blockchain associations, has sent a letter to the members of the European Parliament’s ITRE Committee, expressing concerns about the removal of Electronic Ledgers as a trust service from the electronic identification and trust services for electronic transactions in the internal market (eIDAS 2) proposal, occurred on 9 February 2023.

The reason behind the removal was justified as a maintenance of the file’s technological neutrality. However, the concept of electronic ledgers, as described in the intended Section 11 on “Electronic Ledgers”, is already technologically such, as it identifies a generic category rather than a concrete implementation.

The removal of the Electronic Ledgers concept from the regulation would create several downstream problems, as Electronic Ledgers are widely used as key components of trust architectures. They are fundamental pillars for the European digital infrastructures as well as a robust shield against cyberattacks, preserving the interests of enterprises and consumers alike.

Today, numerous European innovators use Electronic Ledgers in solutions preventing forgery of digital assets, prove or claim ownership of resources, track the supply chain, and digitise intellectual property rights. Multiple initiatives across Europe already build on the concept of electronic ledgers as trust services, such as the European Blockchain Service Infrastructure or recent prototypical implementations of the Digital Product Passport.

Via this open letter, it is stressed that eIDAS 2 regulation needs to be future-proof and be able to support the societal and economic developments that have emerged in recent years.

DIGITAL SME* points out the economic importance of the provisions of Section 11 as a breeding ground for innovation in Europe and urges the Members of the European Parliament to reinstate the removed provisions.

You can find the open letter here.


*Together with the International Association for Trusted Blockchain Applications (INATBA), the EU Digital Identity Wallet Consortium (EWC), the TRACE4EU Consortium, the Digital Credentials for Europe Large Scale Pilot (DC4EU) the European Crowdfunding Network, Alastria, the French Federation of Blockchain Professionals (FFPB), IDunion, Association pour le Développement des Actif Numériques (ADAN), Crypto Economy Organisation, Mobility Open Blockchain Initiative (MOBI), Italia4Blockchain, the German Blockchain Association (Bundesblock), the Dutch Blockchain Coalition and Infrachain

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