Five keys to understanding the importance of digital identity in Spain

The Spanish Association of Fintech and Insurtech (AEFI) has created its latest AEFI Voice report, in which it analyzes the situation of digital identity in Spainand shared it with Cointelegraph in Spanish on July 1st.

They said that two bills (trustworthy electronic services and complementary urgent social and economic measures to deal with COVID-19) are currently being prepared to address a problem that they believe is critical. for the Spanish economy in the post-Covid 19 scenario. They also believe that this would speed up public and private practices by issuing qualified electronic certificates. This, in turn, would result in a significant saving and efficiency increase for the administration and would bring a substantial part of the underground economy to a standstill and release almost 14% of the GDP.

In this context They highlighted five keys to understanding the importance of digital identity in Spain. AEFI details below:

* eIDAS, a directive that is still pending development in Spain

Five keys to understanding the importance of digital identity in Spain
Five keys to understanding the importance of digital identity in Spain

EIDAS (European regulation establishing a common legal framework for fiduciary services and electronic identification means) was approved in 2016, but does not yet apply to the potential in Spain. For identity, it presupposes what the euro was for the currency in 1999: the homogenization of a fundamental theme for the creation of a digital single market. It is the seed of the European DNI that enables more than 500 million citizens and thousands of businesses to conduct secure and reliable electronic transactions that previously required physical presence identification, but is now online to create a framework for entirely new ones Performance and a common business language for operations between administration, companies and citizens.

* Spain, an anomaly in Europe

The “Royal Decree-Law 11/2020 of March 31st, which took additional urgent social and economic measures to deal with COVID-19, authorized the issuance of qualified electronic certificates by qualified providers Trust Services, completely online. However, some restrictive points of the Directorate General for the Digital Society have limited the effectiveness of this authorization, restricted its use and ordered the revocation of the certificates as soon as the alarm status has ended.

* The digitization of administration, an upcoming issue

Spain does not exceed 20% maturity when it comes to digitizing public administration, taking into account the progress of digital processes and their use by citizens. The number of identities, DNIe and FNMT certificates available is almost completely used (less than 1%) due to the difficulty in using and accessing them. This use is mainly restricted to mandatory procedures for freelancers and companies at the VAT agency.

Regulated sectors such as finance or telecommunications can now attract customers online at any time and in any part of the world, and public administration will need this in the post-Covid scenario19 to support economic recovery and ease of access to its services for citizens. It is estimated that the digital single market will generate more than € 30 billion in the European market over the next five years and will become the main driver of competition in key sectors of the economy, including public administration, and will favor services in sectors such as finance, health, Telecommunications, collaborative economy, border crossing, traffic and mobility and even electronic democracy and citizen participation.

* Spain, a pioneer in identification solutions that does not take advantage of its competitive advantage

Despite the delay in the application of eiDAS, Spain was a pioneer in implementing solutions that enabled remote identification that was accepted and promoted by SEPBLA and that in 2019 enabled Spain to identify more than a million users in the financial market with the highest level of security. However, this competitive advantage, which the regulations allow, is reduced in comparison to models such as the Italian or the German, although these systems are more inefficient and decrease due to their high cost and complexity. With this in mind, some Spanish trust service providers are already noticing the impact of this lack of vision acquired by counterparties from other countries that don’t have as many connections to the digital challenge.

* The development of digital identity, an essential element to boost the economy and support the transformation of society and new production models in the post-COVID-19 scenario

The digital identity, which is easy to obtain and easy to use at full capacity, would allow the government to operate in real time and impact up to 13.6% of GDP, according to a study by Mc Kinsey (.. .). In addition, digital identity is the key to introducing currency and electronic payments to eliminate paper money that could save $ 600 million annually.

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