The concept of identity involves the way we recognize, remember, and respond to people and things. The transition to native digital identity, marked by software automation and digital signatures, aims to bring efficiency, security, and new possibilities to online interactions while addressing challenges posed by fragmented approaches and lack of a universal digital identity layer.

In the envisioned future, individuals possess digital wallets containing credentials issued by trusted authorities, starting with cryptographically signed ID documents like mobile driver's licenses. These digital credentials, representing various aspects of one's identity, enable secure online verification, streamlining processes from opening bank accounts to accessing medical records.

In an ideal digital world, individuals should control their data and be able to hold and present various credentials, such as a university diploma and a driver's license, without disclosing unnecessary personal information. Standardized data formats and interoperability across different verifiers and wallet applications are crucial to ensure seamless integration of credentials, as recognized by efforts like the Mobile Driver's License (mDL) outlined in ISO/IEC 18013-5.

Digital identity is a burgeoning paradigm for how people create relationships digitally with peers, companies, and governments. As a result, there is a wide cohort of organizations and bodies that are involved in crafting the future of standards and how implementations can interoperate to protect the interests and privacy of individuals. The contributions of these organizations outlined here help to ensure solutions built are interoperable for many use cases and adopt the best practices for digital security and protecting privacy.

ISO and IEC have collaborated to publish standards like ISO/IEC 18013-5 for mobile driver's licenses, focusing on security and data exchange. AAMVA contributes to uniformity in the U.S. and Canada through model programs for mobile driver's licenses, while additional standards and regulations in the digital identity landscape play a vital role in understanding the broader context.

This article covers a list of relevant identity, privacy, and data protection laws and regulations that affect the conversation around digital identity, across the United States and the European Union.

The surge in cybercrime, particularly identity theft and fraud, has led to over $5.8 billion in consumer losses in 2021, a 70% increase from 2020, emphasizing the urgent need for a secure digital identity infrastructure. With identity-related fraud affecting public benefits and financial assistance, businesses face significant costs due to data breaches, with the average cost for a U.S. company being $9.44 million, highlighting the global challenge and the importance of establishing a trustworthy and secure digital identity system.