Switzerland Unveils Decentralized E-ID System and Federal Electronic Wallet

Switzerland has made a significant leap in digital identity management by announcing key technical decisions for its national electronic identity (E-ID) system and the Federal Electronic Wallet (SWIYU) initiative. Building on a pilot program launched in 2024, these decisions were disclosed during a public participation meeting, outlining the technical standards and an implementation timeline aimed at decentralizing digital identity infrastructure. The Swiss Federal Council has chosen DID:webvh for Decentralized Identifiers (DIDs), allowing citizens control over their digital identifiers without the need to rely on a centralized authority, which aligns with broader European initiatives for decentralized identity systems.

The new system employs a Verifiable Credential (VC)-based trust protocol for secure identity information sharing. This is complemented by SD-JWT (Selective Disclosure JSON Web Token) technology, enabling selective disclosure of identity attributes while maintaining user privacy. To standardize communication between identity providers, holders, and verifiers, the protocols OpenID4VCI and OpenID4VP will be applied. These protocols will facilitate credential issuance and verification, a trend that aligns with several ongoing European digital identity projects. SWIYU, the Federal Electronic Wallet, will serve as a central interface for managing E-IDs, allowing for the storage and presentation of digital credentials across various applications and use cases.

The rollout strategy for this new system is structured in multiple phases. Initially, a public beta environment called ‘PLAYGROUND’ will be launched in Q1 2025, providing issuers and verifiers an opportunity to test the system. This initiative also includes a pre-release phase focused on proof-of-concept development, which will eventually transition into a full production phase as the system matures. This phased implementation strategy aims to ensure thorough testing and gradual user adoption, thereby creating a robust and user-friendly national digital identity system.

In summary, Switzerland’s announcement marks a comprehensive effort to decentralize digital identity management, mirroring European trends and placing emphasis on user control, privacy, and secure credential management through advanced protocols and technologies. The phased approach allows for extensive testing and a gradual adoption process, ultimately aiming to deliver a strong, reliable, and accessible national digital identity system for Swiss citizens.

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