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Amid the rapid development and adoption of digital identity solutions globally, one political party in New Zealand has introduced a new bill that protects the validity of physical IDs in the digital era.

The New Zealand First party (NZF) introduced the new bill this week, with party leader Winston Peters claiming that digital-only systems would be insecure or “coercive.”

“This is not about rejecting technology or digital progress. It’s about ensuring Kiwis retain the freedom to verify their identity without sacrificing their privacy,” Peters said.

The bill proposes fines ranging from 10,000 NZD ($5,900) to 50,000 NZD ($30,000) for organizations that refuse to accept physical IDs, passports, drivers’ licenses, or school IDs as proof of age.

According to Peters, any new law must protect New Zealanders’ privacy and choice, “not erode them in the name of digital convenience.”

While NZF has come out against digital-only systems, all its members in parliament voted in support of a draft bill to introduce digital driving licenses and warrants of fitness last month.

The new bill comes at a time when the New Zealand government is pushing to launch digital IDs. In May, it launched NZ Verify, an app that verifies international digital credentials and eases travel in the country. In July, it appointed two firms to develop the Government App and a national digital wallet to store accredited digital ID credentials.

Last week, the government launched a tender seeking a developer for its Trust Framework Register, which will manage the companies authorized to provide digital ID services under a new framework that took effect in July. The development of the new register will start in November, with the official rollout scheduled for February next year.

In light of all the effort to digitize identity, NZF says citizens’ right to reject the digital versions and stick to physical IDs must be protected.

“This isn’t anti-digital. It’s about putting people in control of their personal information. We’re offering common-sense guardrails against digital overreach. This Bill stands up for every Kiwi who values their privacy,” commented Peters.

NZF holds a measly eight seats in the 123-member parliament and would need the support of other parties to pass the bill.

However, Transport Minister Chris Bishop has already dismissed the bill as irrelevant, noting that the government has put measures in place to protect the validity of physical IDs.

“We anticipate physical licences will continue to be issued and used for a long time to come. The point of our reforms is to give people the choice so they can use a physical licence card or a digital licence, whichever suits them best,” Bishop stated.

While the draft bill is unlikely to pass, it highlights a broader societal need to retain tangible alternatives in the face of rapid digitalization.

Even in finance, where digital channels account for over 90% of payments globally, some fiercely rally behind physical cash. In Slovakia, for instance, lawmakers passed a law preserving access to cash as digital euro fever grips the EU.

EU launches two digital ID pilots

While New Zealand protects its physical IDs, the European Union is forging ahead with its digital ID plans.

APTITUDE and WE BUILD, two large-scale digital ID projects, have officially launched, marking a landmark stride for the region’s pursuit of a universal digital ID.

Funded by the European Commission, the two pilots aim to realize the vision of the European Digital Identity (EUDI) Wallet. Their members include EU governments, public institutions, major enterprises, smaller businesses, and industry experts. However, they target two separate fields.

APTITUDE is a consortium that focuses on retail use cases. Initially, its members will explore the applications of a digital ID in travel, mobile vehicle registration, banking, and ticketing. According to the Commission, APTITUDE will “demonstrate the interoperability, usability, and scalability of EUDI Wallets while actively promoting the benefits of the ecosystem.”

On the other hand, WE BUILD focuses on businesses and is being led by authorities such as the Netherlands’ Ministry of Economic Affairs. Core priorities include using digital ID in Know Your Customer (KYC) processes, corporate credential issuance, and managing digital signatory rights.

APTITUDE and WE BUILD are the last two of six Large Scale Pilots projects testing the EUDI Wallet before it rolls out. The Commission has mandated all EU member states to avail the wallet to their citizens by the end of next year.

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