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Switzerland is preparing to implement its national digital identity system after a public vote, prompted by critics who gathered enough signatures to demand a referendum.

The plan narrowly received the support of Swiss voters, and authorities will begin the launch procedures for the digital ID system. A total of 50.4% of the votes cast were in favor of the digital ID plan, while 49.6% rejected the offering over privacy concerns.

In the weeks before the referendum, opinion polls revealed that up to 60% of the public supported digital IDs, but frantic campaigns by critics narrowed the margin on voting day. An earlier vote for digital IDs failed to garner public support following allegations over data centralization by private operators.

Building on the lessons of the previous botched campaign, authorities say the new proposal will be run entirely by the government with several guardrails for data protection. First, residents will reserve the right to apply for and use the digital ID system alongside the existing national identity card.

As an added layer of protection, biometric data and other personal information will be stored only on users’ smartphones. Authorities disclosed that a government agency seeking information will be limited to specific details, with citizens exercising greater control over the system.

Upon mainstream launch, financial institutions in the country will recognize the digital IDs for opening bank accounts remotely. Furthermore, it will support access to government services, with experts highlighting age and other private sector verification use cases.

Switzerland’s long-standing tradition of safeguarding personal privacy explains the fierce opposition to the digital ID system. A wave of banking secrecy laws and restrictions on Google Street View underscores the country’s stance on data privacy.

A raft of upsides for digital IDs

Despite critics’ concerns, national digital ID systems are rising in popularity, accentuated by a surge in adoption metrics. The biggest adopters appear to be developing nations, with Nigeria and Zambia leading the charge in Africa, while South Korea continues to lead the charge in the Far East.

While countries are leaning into the offering, the United Nations and other international organizations are testing the waters with digital ID solutions for pensioners. Meanwhile, a study by the Tony Blair Institute for Global Change (TBI) revealed that advanced digital ID systems can disrupt the growing human trafficking industry, but improved data exchange with law enforcement agencies is required.

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UK digital ID faces backlash

Elsewhere, plans by authorities in the United Kingdom to introduce a compulsory digital ID system have garnered stiff opposition from critics over concerns that a mainstream launch will shut out elderly residents.

Civil societies voiced their criticism of the plan, noting that residents over the age of 65 may be excluded from accessing government services. The critics cite several studies indicating that over two million people over 65 are not active Internet users.

Earlier, U.K. authorities unveiled a plan for a new digital ID scheme for the country, designed to cut the prospect of work for illegal migrants. Prime Minister Keir Starmer disclosed that the incoming digital ID will be mandatory for residents seeking work while highlighting a range of benefits for holders.

Apart from stifling illegal migration, Starmer noted that the digital ID will allow holders access to public services while serving as a means of identification. Despite a range of privacy guardrails, fierce criticisms for the digital ID system have surfaced, with the grim prospects of excluding elderly residents fuelling concerns.

Age U.K. Charity Director Caroline Abrahams described the incoming launch as “chaotic,” noting that authorities are responsible for ensuring that non-digital natives can still reap the rewards of digitization. Age U.K. has submitted a 173,000-strong petition to the Prime Minister’s office, teeing up a debate in parliament in the coming weeks.

“The sprint towards digital by default is chaotic, unfair and inefficient, and it’s only with Government leadership that we have any chance of getting the best from it and sharply reducing the numbers who feel totally excluded, among them millions of older people,” said Abrahams.

However, the government has responded with claims of “physical alternatives” for individuals without smartphones or internet access. Authorities noted that physical documents will remain in use, but their long-term validity amid claims that “digital IDs will be the bedrock of the modern state” has sparked concerns.

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Concerns continue to trail digital ID systems

The concerns around launching a national digital ID system in the U.K. are not an isolated incident. Across the globe, critics have railed against the offering over the risk of government overreach and mass surveillance, while others are pointing to the potential of security breaches using emerging technologies.

Despite the wave of criticism, adoption among nation-states continues to rise, with a study from the Tony Blair Institute for Global Change (TBI) pointing to use cases in disrupting human trafficking. Kurdistan has set a new digital ID milestone after issuing over 2 million IDs to residents, while Ireland is accelerating efforts for a nationwide rollout.

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Watch: Digital identity, digital assets enable Web3

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