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Regulation and Policy

Zero-Knowledge Proofs for the European Digital Identity Framework (eID)

Zero-Knowledge Proofs for the European Digital Identity Framework (eID)

The European Union has had an ambivalent relationship with privacy, applying strict data protection regulations.

At the same time, its central bank digital currency (CBDC) project lacks the anonymity standards of private cryptocurrencies.

Last week, the EU Industry, Research, and Energy Committee approved using zero-knowledge proofs for the European digital identity framework (eID) amendments. This would grant EU citizens complete control of their data, allowing them to identify and authenticate themselves online without commercial providers, a press release states

The move could facilitate the emergence of new business models and opportunities in the digital economy while protecting citizens’ privacy.

READ MORE: There’s an Uptick in Institutional Demand for Crypto Derivatives – CEO of CME Group

Zero-knowledge proofs at the center of digital currencies’ regulatory compliance and privacy

Zero-knowledge proofs have recently gained attention from researchers as a possible means of ensuring regulatory compliance and privacy in digital currencies. A joint paper by the San Francisco-based Mina Foundation, German Hauck Aufhäuser Lampe bank, and the Interdisciplinary Centre for Security, Reliability, and Trust of the University of Luxembourg showed how zero proofs could be connected to Europe’s eIDAS electronic identity system.

However, only some are convinced that using proofs alone is sufficient for transactions that require personal information sharing, suggesting off-chain solutions are also needed.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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