The aim of the innovations is to create simple and secure online systems that will work throughout the EU. For example, ID-card and biometric data can be presented directly through the mobile app of the digital wallet. The new payment system will replace national bank cards, which are valid only in the territory of the state that issued them.
How to use the European Digital Identity digital wallet
The European Digital Identity digital wallet will be released as a free mobile app. It will include:
Citizen or resident ID card;
a driver’s license;
Diplomas, certificates, and certificates of education;
Data on bank accounts, debit, and credit cards.
Logging into the app will be available only through the owner’s biometric data: through a fingerprint or retina scan, or through facial recognition.
The mobile application European Digital Identity will allow owners to confirm their identity and age, cross borders, rent cars, apply for loans and tax returns, open bank accounts and apply to universities in any EU country. At the same time, users will decide which personal data they want to share in any given case.
If an EU country already has its own digital identity system, the new application will synchronize with it. The installation of the European Digital Identity application will be voluntary.
The European Commission will develop standards for the collection and processing of personal data by September 2022. At the same time, the technical basis for the launch of the digital wallet in all EU countries will be developed. The overall launch of the application is planned for October 2022.
How the new payment system will simplify money transactions in the EU
Online systems for investors
Investors may be allowed to pay for participation in European residency programs through a new payment system. Most countries with programs require payments to come from outside the European Union. But there are exceptions. For example, under the terms of the residence permit program in Portugal, an investor must open an account at a local bank, from which to pay fees and charges under the program.
Holders of passports and residence permits and permanent residence permits of EU countries will have access to the application European Digital Identity. They no longer need to worry about whether they have all their documents with them – all they need to do is install the app once on their smartphone. Government, banking and tax services will also be at their fingertips.
In 2021, it will be possible to obtain a residence permit or citizenship by investment in six European Union countries.