In an innovative step towards digital innovation, the European Parliament and the Council adopted the revised text of the eIDAS Regulation on 29 February and 26 March 2024 respectively. The extensive amendment is also known as European Digital Identity Framework Regulation (EUid Regulation) as it lays the groundwork for the EUid-Framework.

As we await its eventual publication, the implications of this regulation reach far and wide, especially in the digital vastness of the Metaverse and the operational realms of Very Large Online Platforms (VLOPs). As a reminder: VLOPS under the DSA are those online platforms that have an average of at least 45 million monthly active users in the EU and are designated as VLOPS by the Commission.

EUid and the Metaverse: A synergistic future of the new identification feature

The growing Metaverse, a vast network of interconnected virtual spaces, is on the point of a transformative era with the introduction of the EUid framework. At the heart of this framework is the European Digital Identity Wallet, which aims to provide citizens and businesses with a single tool for digital identification and management of official documents across EU countries.

Within the Metaverse, the European Digital Identity Wallet could become a critical tool to facilitate

• Secure digital identification: Enabling users to assert their identity with security and privacy.
• Unified access across virtual environments: Ensuring seamless transitions especially between VLOP-powered platforms, encouraging an integrated ecosystem.
• Enhanced user control: Providing features such as pseudonymous interaction and transaction monitoring through a dashboard, empowering users to monitor the use of their data in their digital interactions.
• Zero knowledge proof technology: With this cryptographic method, a relying party can validate whether a given statement of a European Digital Identity Wallet user is true, without revealing any data on which the statement is based, thus, preserving the user’s privacy.

The critical role of VLOPs

Under the revised eIDAS regulation, VLOPs are mandated to accept the European Digital Identity Wallet, if the user decides to use his European Digital Identity Wallet within the VLOP’s service..

This mandate promises to

• Streamline access: Improve connectivity and user experience across the vast Metaverse.
• Build trust: The wallet's advanced security features lay the foundation for a trusted digital ecosystem.
• Spur Innovation: Encouraging VLOPs to push the boundaries within a secure and privacy-preserving framework.

A broader overview of the EUid Regulation's content and what can be done with the EUid Wallet is provided in our insight.

A call to action for industry

As the final text of the revised eIDAS Regulation awaits publication, the need for readiness and adaptability within the digital industry, especially among VLOPs and Metaverse stakeholders, cannot be overstated. After the publication, the Commission is poised to pass delegated act to establish the standards for the European Digital Identity Wallet. Member states will then be required to provide their national European Digital Identity Wallet within the next 24 months. Which means that we should see the first wallets around the end of 2026.

Industry must proactively prepare for the changes brought about by the European Digital Identity Wallet. This preparation involves not only technical integration, but also a strategic rethink of how digital services are delivered and consumed in the Metaverse. By aligning themselves with the principles of security, privacy and interoperability outlined in the eIDAS Regulation, industry players can lead the way in shaping a Metaverse that is both immersive and secure for its users.