Key Takeaways

Mobile driver’s licenses (mDLs) and other verifiable digital credentials give people more control over their personal information than traditional physical IDs. Instead of sharing full details like addresses or birthdates, individuals can choose to disclose only what is necessary for a specific interaction. By combining cryptography, selective disclosure, and strong privacy safeguards, these systems reduce the risk of surveillance, profiling, and misuse of personal data.

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The Privacy Challenge

Privacy concerns in digital identity generally center around three key issues:

• Verifier Collusion: Preventing two verifiers, or a verifier and issuer, from combining data about a holder to learn more than intended.
• Selective Disclosure: Ensuring holders share only the minimum data required in each interaction.
• Issuer Phone-Home: Preventing issuers from tracking individuals’ movements and habits as credentials are presented.

Without safeguards, digital identity checks could create surveillance patterns. With cryptography and privacy-by-design methods, however, verifiable digital credentials can deliver more privacy than physical cards.

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Increasing Privacy with Selective Disclosure

Physical driver’s licenses often reveal far more than necessary: addresses, birthdays, or other sensitive details. Verifiable digital credentials allow selective disclosure, so only the required data is shared. For example:

• Alice can prove she is over 21 at a bar without revealing her address.
• Samantha can confirm residency for a library card without disclosing her street address.
• Steve can prove he is of legal age to order wine without unnecessary personal details being exposed.

With the adoption of mDLs, people will be able to selectively disclose the minimal required information in the context of that specific interaction. The mDL issuer, the DMV, can create digital signatures for specific attributes (like date of birth) or grouped attributes (like driving privileges) that the holder can choose to disclose.

Selective disclosure can be implemented in every form of digital identity, beyond just mobile driver's licenses and state-issued identity. For example, when applying for a job, a person should be able to present their digital diploma to prove they hold a bachelor's degree in a certain domain, without disclosing what university they graduated from, which may introduce bias into the hiring process.

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Transparency in Data Sharing

Every time a holder decides whether to share their personal information, they should be fully informed of:

• Who is requesting the information,
• What information is required to proceed, and
• Why the information is being requested.

This transparency should go beyond legal terms of service, it can be enforced at the technical level.

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Rebalancing the Power Dynamic

Today’s digital interactions often favor organizations that collect and store large volumes of personal data. Selective disclosure and user-controlled identity shift the power back to individuals. Instead of being tracked or profiled, holders decide what information is shared, and with whom.

This approach introduces a new kind of privacy protection: one that doesn’t rely solely on policies, but is baked into the infrastructure of digital identity itself. It allows for more private, contextual interactions and restores a greater sense of autonomy to the people behind the credentials.

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Conclusion

The move to mobile driver’s licenses and verifiable digital credentials is an opportunity to increase privacy, not weaken it. Done right, digital identity can create safer interactions, protect individuals from overexposure, and build a privacy-forward digital world.