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China’s National Digital ID System Trials Begin Across 80 Internet Service Applications

 

China has initiated trials for its new national digital identification system across more than 80 internet service applications. This move follows the release of draft rules on July 26, with a public review and comment period open until August 25. The proposed system marks a significant step toward enhancing digital security and privacy for Chinese internet users. Internet users can now apply for their national digital ID by logging onto a mobile app called National Web Identification Pilot Version, developed by China’s Ministry of Public Security (MPS). 

This digital ID, which displays the user’s name, a “web number,” and a QR code, requires users to complete several verification steps, including national ID card verification and facial recognition. The digital ID can currently be used on 81 different applications, encompassing 10 public service platforms and 71 commercial apps. Notable platforms participating in the trial include the popular social media provider WeChat, the online shopping service Taobao, and the online recruitment platform Zhaopin. This broad implementation aims to test the ID’s functionality across a diverse range of services, highlighting its potential to streamline user identification and enhance security across various online activities. 

The proposed digital ID, detailed in a draft provision released by the MPS and the Cyberspace Administration of China (CAC), aims to reduce the amount of personal information that internet platforms can collect from their users. The draft rules state that applying for the digital ID is voluntary, offering users the choice to opt-in to this new system. This initiative is part of a broader effort to address privacy concerns and reduce the risk of data leaks, which have been exacerbated by the misuse of the current real-name registration system by some internet platforms. The current real-name registration system has allowed internet platforms to accumulate excessive amounts of personal information, leading to heightened privacy risks. The proposed digital ID system seeks to mitigate these risks by limiting the data collected by platforms. 

By requiring only essential information for verification, the digital ID aims to provide a more secure and privacy-conscious way for users to interact online. In addition to improving privacy, the digital ID system also promises to enhance convenience for users. With a single digital ID, users can seamlessly access multiple services without repeatedly providing personal information. This streamlined process not only simplifies the user experience but also reduces the opportunities for data to be misused or leaked. The trial of the national digital ID system represents a significant step towards addressing privacy issues while streamlining the process of user identification online. By implementing a digital ID, China aims to create a more secure and privacy-conscious internet environment for its users. 

This initiative reflects a growing recognition of the need for robust digital security measures in an increasingly interconnected world. As the public review and comment period progresses, feedback from users and stakeholders will be crucial in refining the digital ID system. The insights gained from this trial will help shape the final implementation, ensuring that the system effectively balances security, privacy, and user convenience. China’s commitment to enhancing digital security and privacy through this national digital ID system sets a precedent that could influence similar initiatives worldwide.

Onfido Acquires Airside to Strengthen Digital ID Verification


Tech company, Onfido, is moving a step closer to developing the digital passport of the future, through its acquisition of Airside Mobile, a US-based digital identity solutions provider primarily aimed at the travel industry.

Over 10 million travelers have utilized Airside's shareable digital identification technology, which is regarded as reliable by many U.S. government organizations, including the Transportation Security Administration (TSA). The major airlines in the world are among its clients, permitting travelers to use the apps like Airside Digital Identity to breeze through US airports since the app provides users with official documents like government-issued ID and health records.

According to Onfido, which already provides ID verification to a variety of industries, the acquisition “will enable businesses to create a seamless user experience that supports more effective onboarding and expanded customer relationships, while radically reducing fraud and minimizing the liability associated with handling sensitive data.”

This partnership may have wide-ranging effects on the financial services sector because it will enable financial institutions to confirm a customer's ID without requiring them to scan and submit papers each time they sign up. KYC screening has grown to be a significant compliance burden for banks and other financial service providers since Russia's invasion of Ukraine triggered a series of international sanctions. Other uses include e-commerce and internet platforms in addition to travel and finances.

Onfido Will Apply Airside’s ‘proven approach’ in Travel.

“Until now identity verification has digitised physical processes, but those processes haven’t changed[…]We’re still handing our identity over to be checked every time we access a new service. This partnership will change that, giving users control and organisations greater confidence in who their customers are. We plan to take Airside’s proven approach to the airline industry and apply it to other sectors requiring high customer assurance, such as financial services – providing a single, trusted view of each customer’s identity,” says Mike Tuchen, CEO of Onfido.

Meanwhile, Adam Tsao, Founder at Airside says, “By teaming up with Onfido and layering in their trusted verification technology with Airside’s Digital ID, we can take identity to the next level with the same ease and trust we have with online payments.” Apparently, Tsao is meant to stay with the company and supervise the product from within Onfido.

With the acquisition of Airside by Onfido, the company may move a step closer to digital IDs, which would be used anywhere once verified. Consumers will be able to utilize a single, integrated digital ID to authenticate their identity wherever they need to. Similar to how credit cards and mobile payments have lessened our daily reliance on cash, it may render traditional ID cards obsolete. 

Consider entering a local bar and presenting your digital ID, which is kept in your digital wallet and also grants you access to internet services, as identification. Additionally, there would be no need to continuously scan or upload documents because your digital ID would be available for use at several points of service and would remain in your wallet.