In line with the push to embrace emerging technologies for digitalization, Pakistan has launched a “dematerialized” digital identity card for residents.
The digital IDs are the brainchild of the National Database and Registration Authority (NADRA) on the occasion of its silver jubilee. The IDs exist only in digital formats and do not have a physical replica.
Federal Minister for Interior and Narcotics Control Mohsin Naqvi described the digital IDs as a significant leap in Pakistan’s push toward transformation with emerging technologies.
Naqvi disclosed that the dematerialized digital IDs will be integrated into the Pak ID mobile app, NADRA’s offering for remotely managing national ID documentation. The integration will allow holders to store and use their new digital IDs from their smartphones.
Use cases for the digital ID will extend to e-passports, banking verification, and driver licenses while supporting interoperability with existing national ID systems.
Furthermore, Naqvi disclosed that a digital verification system is in the works, with a pilot set to roll out in mid-August. The system will provide automatic verification for Pakistanis under the World Bank’s Digital Economy Project.
A key feature of dematerialized digital IDs is their ability to reach citizens in remote parts without access to traditional IDs. Furthermore, Pakistanis living outside the country will have access to digital IDs, allowing them to access a wave of offerings requiring online identification.
The rollout of the digital ID was accompanied by a commemorative coin by the Pakistani central bank and a book launch detailing NADRA’s history. A special postage stamp was also unveiled at the event attended by NADRA Chairman Asif Munir and NADRA founding chairman Zahid Ihsan, along with representatives from the Pakistan Bureau of Statistics and Immigration.
Despite the skeptical stance toward digital assets, Pakistan is embracing blockchain to fast-track its digital transformation. The State Bank of Pakistan (SBP) has given the green light for banks to turn to blockchain-based Know Your Customer (KYC) platforms for compliance.
Given the importance and utility of this platform, both for banks and their customers, banks are advised to join the ‘shared e-KYC platform,’ and dedicate required financial, technological and human resources for its timely and effective implementation,” said the SBP.
The SBP is also progressing toward launching a central bank digital currency (CBDC), with blockchain at its core, highlighting its security and finality as key benefits for implementation.
Brunei speeds up digitalization with digital ID
A similar development was reported in Brunei, which is rapidly advancing toward the complete digitalization of its economy with the introduction of of the Brunei Digital Identity (BruneiID).
The Southeast Asian country is set to launch the new offering for citizens to streamline national identification solutions. Minister of Transport and Infocommunications Dato Seri Setia Shamhary Mustapha disclosed the plans for the digital ID during a Legislative Council meeting.
The BruneiID proposal adopts a cautious strategy, highlighted by a six-month pilot project. This pilot will evaluate potential use cases and privacy protection rights before a commercial rollout later in the year.
The government will test the waters with a decentralized identity management system during the pilot while allowing greater control over their data. According to Mustapha, the six-month pilot will integrate with Brunei’s existing systems to push the frontiers for potential use cases.
Early users will be able to access financial services with their test digital IDs for payments right away. The IDs will also provide access to a range of e-government services, including healthcare and subsidies.
Pundits say that the pilot’s success could see digital IDs make their debut for voting and regional identity verification. However, to protect users, the pilot will keep things simple by pursuing increased security standards for online transactions.
The country has since sunk BND146.5 million (US$109 million) to improve the digitalization of its public sector. Armed with the fresh capital injection, authorities are proceeding with the BruneiID project as the flagship offering, setting the stage for broader rollouts.
Brunei’s plan extends to AI solutions for its public sector, teaming up with other ASEAN countries for governance and improved adoption metrics.
Despite its rapid pace toward digitalization, Brunei will continue its crackdown on the illicit use of digital assets, shutting down illegal mining operations.
For governments seeking to embrace Web3 technologies, digital IDs are the easiest starting point to test the waters. Nigeria and Zambia have picked up the gauntlet to experiment with digital ID initiatives while South Korea continues refining its offerings.
Elsewhere, Taiwan has its eyes on a 2025 launch for a digital wallet containing a digital ID for citizens. For all its benefits, governments must manage the tradeoffs of privacy and security while grappling with potential scalability issues.
Watch: Why identity is important as we move to Web3
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