On December 8th in Montréal, Canada and the European Union took another step towards digital cooperation. At the inaugural meeting of the EU-Canada Digital Partnership Council, representatives from both sides signed agreements to align their approaches and deepen cooperation across key digital policy areas. Among them was a commitment to collaborate on digital identity (ID) systems, positioning them as a pillar of Canada’s digital strategy—an important and long-overdue goal that, unfortunately, Canada remains unprepared to see through.
The meeting outlined plans for cooperation on digital credentials and trust services, where Canada and the EU will share knowledge, jointly test technologies, and develop real-world use cases and pilot projects.
Ideally, this collaboration will culminate in the creation of digital ID systems recognized in both jurisdictions—meaning that a driver’s license, university degree, or any other credential issued in Canada would be automatically accepted in Europe (and vice versa), according to the Digital Governance Council.
Understanding digital IDs
Once upon a time, the infrastructure that powered our lives—our bridges, roads, energy grids, and telecommunication networks—was entirely physical. But in the digital age, innovation and commerce rely on the flow of data, knowledge, and information. As Don Tapscott aptly noted in the Globe and Mail, our infrastructure must reflect this transformation.
One way Canada might do this is by adopting national digital IDs. But what exactly does this entail?
A digital ID refers to a system composed of an individual’s verified credentials, allowing them to prove their identity online. A good way to think about them, according to the Government of Canada, is less so about the technology itself and more about what it enables you to do, such as gaining access to online services, proving something about your identity (e.g., age, health records), or expressing a right or privilege (citizenship, driver’s license). Doing so with a digital ID means authenticating yourself once, rather than managing multiple accounts across different services. This reduces friction while also improving security by limiting the number of access points hackers can exploit.
To this, you may say: but what if a hacker compromised my digital ID—wouldn’t they have access to everything? This raises concerns about the risk of centralized data points.
For Canada, interoperability with Europe offers clear economic incentives. International authentication would reduce friction for businesses, support labour mobility, and facilitate regulatory cooperation. For the EU, aligning digital ID systems with Canada supports its stated goals of bolstering innovation and competition in a global digital economy.
Estonia: an image of the future
Advocates often point to Estonia’s digital ID system as proof of both security and prosperity. Since 2002, Estonian citizens have used their e-IDs to access both public and private services online, including the management of health records, filing taxes, and even voting. Importantly, citizens retain complete control over their data. With user permission, data flows across domains, creating a coherent and efficient ecosystem that reduces information silos. Data is securely stored in decentralized databases, helping to prevent coordinated attacks and internal errors, according to e-Estonia.
Estonia’s success explains why policymakers are framing digital IDs as the foundation of digital public infrastructure. For Canada, interoperability with Europe offers clear economic incentives. International authentication would reduce friction for businesses, support labour mobility, and facilitate regulatory cooperation. For the EU, aligning digital ID systems with Canada supports its stated goals of bolstering innovation and competition in a global digital economy.
Why Canada isn’t ready for its own digital ID (yet)
Currently, Canada has no national digital ID. Before it can hope to achieve this, it must first address its fragmented, patchwork design of provincial digital ID systems. These range from full functionality (as seen in British Columbia and Alberta) to various stages of implementation and testing. There is limited, if any, interprovincial functionality.
Second, Canada’s privacy regulations are insufficient for safely implementing a national digital ID. Tamir Israel, director of the Canadian Civil Liberties Association’s privacy, surveillance, and technology program, told the Canadian Bar Association that “national digital IDs might offer governments and companies a way to track every interaction on the internet. We have not developed an ecosystem that is able to preserve privacy.”
Key to this are regulations that control how private corporations handle personal information. Both the Privacy Act and the Personal Information Protection and Electronic Documents Act govern this, but require updates.
Third, trust and politics are intimately intertwined. Even if the government wanted to implement these changes, public skepticism around surveillance is politically salient. David Elder, chair of the communications and privacy group at Stikeman Elliott, told the Canadian Bar Association that, “in an era of populist, slogan-based politics, it’s difficult to bring forward this kind of legislation.” At the same time, prolonged delays or mismanaged innovations can also erode institutional trust, creating a narrow and difficult path for the government to navigate.
Implementing a Canadian national digital ID would deliver undeniable economic value, both domestically and internationally, through collaborations like the EU-Canada Partnership. However, echoing the Digital ID & Authentication Council of Canada, domestic coordination must precede international interoperability. Until Canada addresses fragmentation and modernizes privacy laws, a national digital ID remains an ambitious signpost rather than a reality.
This article was written by Natalie Jenkins as part of the Local Journalism Initiative.
