Competitiveness and Identity Wallets

Competitiveness is currently the theme in Europe. Behind the headlines there are not so obvious connections or building blocks that this will depend on and have to be in place.

This is an attempt to clarify how aspects like digital wallets and digital identity relates to the macro narrative on a global scale which is the only true scope when talking about competitiveness.

The global landscape of digital identity initiatives is rapidly evolving, with significant efforts underway in the UK, European Union, Asia-Pacific region, and the United States.These initiatives are poised to impact international competitiveness, aligning with the strategic recommendations of the Draghi and Letta reports on enhancing economic performance.

United Kingdom's Digital Government Blueprint

The UK's "Blueprint for Modern Digital Government," published in January 2025, outlines a comprehensive plan to transform public services through digital innovation. Key reforms include the introduction of digital credentials, the development of a unified government app, the implementation of artificial intelligence tools, and the establishment of a digital center to lead the transformation towards a truly digital state.

European Digital Identity Wallets

The European Union is advancing its digital identity framework through the European Digital Identity (EUDI) Wallet, aiming to provide citizens and businesses with a secure and interoperable digital identity across member states. This initiative is expected to enhance the digitalization of authorization and reporting procedures, contributing to a more integrated and competitive single market.

Asia-Pacific Digital Identity Consortium

In December 2024, the Asia-Pacific Digital Identity Consortium (APDI) was inaugurated in Hakone, Japan, bringing together stakeholders from 36 countries. APDI aims to foster trust, bridge gaps, and promote inclusion through robust digital identity solutions, addressing challenges such as identity theft, data forgery, and leakage. The consortium seeks to establish governance that prescribes unified technologies and operational requirements, ensuring interoperability across borders and building a trusted digital ID economic zone in the region.

United States Presidential Order on Electronic Identities

In January 2025, the United States issued an executive order on electronic identities, emphasizing the development and adoption of secure digital identity solutions. This move aims to enhance the security and efficiency of digital transactions, fostering economic growth and maintaining the country's competitive edge in the global digital economy.

Impact on Competitiveness and Alignment with Draghi and Letta Reports

The Draghi and Letta reports highlight the critical role of digital infrastructure and innovation in enhancing economic competitiveness. The Letta report underscores the centrality of both energy and electronic communications to any industrial policy, emphasizing the need for a unified and efficient single market. The Draghi report calls for strategic actions to boost growth in the European Union, focusing on innovation, descarbonization, and security.

The global digital identity initiatives align with these recommendations by:

1. Enhancing Digital Infrastructure: Developing secure and interoperable digital identity systems strengthens the digital infrastructure, facilitating seamless cross-border transactions and interactions.
2. Promoting Innovation: Implementing advanced technologies, such as artificial intelligence in digital identity verification, fosters innovation and positions economies at the forefront of technological advancements.
3. Strengthening Economic Integration: Harmonizing digital identity standards across regions supports the creation of a more integrated and competitive market, reducing barriers to trade and cooperation.

By embracing these digital identity initiatives, countries can enhance their competitiveness, drive economic growth, and align with the strategic imperatives outlined in the Draghi and Letta reports.