Importance of Digital Identity in the 21 Century

A few years ago, I came up with a phrase that I had never heard or read from others and that I have made my motto, so "I copyrighted" – 'We are technology dependent'. Our relationship with the digital world has changed significantly for a straightforward reason: we live at the beginning of an era in which our Digital Identity (DI) is increasingly prominent.  

In the 21st century, DI has become a cornerstone of modern society, shaping how individuals interact, transact, and navigate the digital world. Its importance spans various domains, including technology, commerce, governance, and personal identity. DI is indispensable in the 21st century, serving as the cornerstone of online communications, businesses, and relationships.  

Its importance extends beyond technology and commerce, influencing governance, privacy, inclusion, and individual empowerment. As digital ecosystems evolve, the effective management, protection, and stewardship of DI will remain paramount in ensuring trust, security, and integrity in the digital age. Here are several vital reasons why DI is crucial in the 21st century: 

• Increase of online transactions and commerce: DI enables secure and seamless online transactions, allowing individuals to shop, bank, and conduct business over the Internet. It provides authentication and authorization, instilling trust between parties in digital transactions. 

• Personalization and User Experience: DI facilitates personalized user experiences by enabling platforms and services to tailor content, recommendations, and interactions based on individual preferences, behaviors, and demographics. 

• Access to Services and Resources: DI grants individuals access to various digital services, resources, and information, including social media platforms, educational resources, healthcare services, and government benefits. It serves as a gateway to participation in the digital economy and society. 

• Identity Verification and Security: DI is essential for verifying individuals' identities in online interactions and transactions. Implementing robust authentication and verification mechanisms helps prevent identity theft, fraud, and unauthorized access to sensitive agencies such as financial, private, and government institutions.  

• Cybersecurity and Data Protection: DI plays a critical role in cybersecurity and data protection efforts by enabling organizations to enforce access controls, monitor user activities, and detect anomalous behavior. It helps safeguard against data breaches, unauthorized access, and malicious activities. What professional or business data is not in a digital form nowadays? 

• Regulatory Compliance and Privacy: In an era of increasing data privacy regulations and consumer rights, DI frameworks are essential for ensuring regulatory compliance and protecting individual privacy rights. Compliance with the General Data Protection Regulation (enforced in European countries), the California Consumer Privacy Act, the California Privacy Rights Act, and Payment Services Directive (PSD2) regulations (to mention a few) requires robust identity management practices and data protection measures. 

• Digital Inclusion and Accessibility: DI can promote digital inclusion and accessibility by providing marginalized populations with access to essential services, resources, and opportunities. It helps bridge the digital divide and empower individuals to participate fully in the digital economy and society. 

• Innovation and Technological Advancement: DI fuels innovation and technological advancement by enabling the development of new authentication methods, identity verification technologies, and identity-based services. It is a foundation for emerging technologies such as Blockchain, biometrics, and decentralized identity systems. 

• E-Government and Civic Engagement: DI facilitates e-government initiatives and civic engagement by enabling secure access to government services, online voting systems, and digital citizenship programs. It promotes transparency, efficiency, and accountability in governance processes. 

• Identity Sovereignty and Self-Ownership: In an age of increasing data centralization and surveillance, DI frameworks prioritizing identity sovereignty and self-ownership empower individuals to control their personal data, privacy settings, and online identities. They promote autonomy, dignity, and agency in digital interactions. 

Role of the USA Government in Digital Identity  

Individuals cannot rely exclusively on the government and some private sector businesses, for example, financial and medical, for failing to guarantee the security of our digital identity. In public appearances, where I am usually invited to talk about the advantages and issues of modern technology and cybersecurity, a frequent question arises as to why the US government and the private sector need to do more to protect our digital identity. Moreover, before I explore this topic, DI protection is our first responsibility, not solely a government or private sector mission.  

The US government's role in DI encompasses several key areas aimed at promoting security, privacy, interoperability, and trust in digital transactions and interactions. Here are some of the ways the US government is involved in shaping digital identity: 

• Regulatory Frameworks: The US government establishes regulatory frameworks and standards for DI data collection, use, and protection. The Federal Trade Commission (FTC) and the National Institute of Standards and Technology (NIST) play significant roles in developing guidelines and best practices for DI management. 

• Privacy Protection: The US government works to safeguard individual privacy rights in the digital realm. The Health Insurance Portability and Accountability Act (HIPAA) and the Children's Online Privacy Protection Act (COPPA) laws establish privacy standards for specific sectors and age groups. Additionally, the FTC enforces consumer privacy protections and investigates data breaches and privacy violations.  

• Identity Verification: Government agencies such as the Department of Homeland Security and the Social Security Administration play serious roles in verifying and authenticating individual identities for immigration, national security, and entitlement programs. These agencies utilize various identity verification methods and databases to establish and validate digital identities. 

• National Strategy for Trusted Identities in Cyberspace (NSTIC): It was an initiative launched during the Obama administration in 2011. It aims to improve online transactions' privacy, security, and convenience by developing an interoperable identity ecosystem. While NSTIC is a guiding framework, implementation efforts involve collaboration between government agencies, private-sector stakeholders, and non-profit organizations. 

• Digital Services and Access: Federal agencies increasingly provide digital services and platforms that require secure and user-friendly DI solutions. Initiatives such as Login.gov, a single sign-on platform for accessing government services, aim to streamline access while maintaining strong authentication and privacy protections. Another that will have a significance impact is the implementation and enforcement of the REAL ID Act set for May 7, 2025. If consider the wide impact of this new regulation, understanding the critical importance of DI should be easier.  

• Cybersecurity and Information Sharing: The US government promotes cybersecurity initiatives and information-sharing efforts to enhance the resilience of DI systems against cyber threats and attacks. Agencies such as the Cybersecurity and Infrastructure Security Agency (CISA) collaborate with public and private sector partners to mitigate risks and vulnerabilities in DI infrastructure. 

• Interoperability and Standards: The US government supports efforts to develop interoperable standards and protocols for DI management. NIST provides guidance and standards for identity proofing, authentication, and attribute exchange, promoting consistency and interoperability across government and industry sectors. 

• DI Innovation: The US government encourages innovation in DI technologies and solutions through funding programs, research initiatives, and public-private partnerships. Agencies such as the National Science Foundation (NSF) support research and development efforts to advance the state-of-the-art in identity verification, biometrics, and decentralized identity systems. 

The US government plays a multifaceted role in shaping DI policies, practices, and infrastructure to promote security, privacy, and trust in online transactions and interactions. Still, it is essential to understand that if the private sector and individuals do not recognize their role in protecting their customers and self-DI, then the battle win is at risk. This is why the US government seeks to address emerging challenges and opportunities in the evolving DI landscape by fostering collaboration between government agencies, private-sector stakeholders, and civil society organizations. 

Why DI is not yet regulated in the USA? 

DI regulation in the USA faces several challenges and complexities, contributing to the absence of comprehensive federal legislation explicitly addressing digital identity. Here are some reasons why (in my personal opinion) DI regulation has not yet been fully established in the USA: 

• Fragmented Regulatory Landscape: The regulatory landscape in the USA is fragmented, with various laws and regulations governing different aspects of identity, privacy, cybersecurity, and data protection. This fragmentation makes it challenging to develop cohesive and comprehensive regulations specifically focused on digital identity. 

• Privacy Concerns and Civil Liberties: There are concerns about the impact of DI regulation on individual privacy rights and civil liberties. Any regulatory framework for DI must balance security, convenience, and privacy, which requires careful consideration and stakeholder engagement. The ACLU, for example, usually goes against almost anything related to regulations with the excuse of “civil liberties and individual privileges.” When this organization was created in 1920 because of the abuses during the Red Scare, particularly the Palmer Raids, where many individuals were arrested without proper legal procedures, we have no DI issues of any kind, but the organization remains strong and generally supported. This is not an attack in any way on the ACLU, which often defends individual rights; it is just an example of why DI is a dichotomy topic nowadays. The typical discussion: digital protection vs. individual rights.  

• Complexity of Digital Ecosystems: The digital landscape is rapidly evolving, with new technologies, platforms, and business models constantly emerging. Regulating DI requires an understanding of complex technical and operational aspects and the ability to adapt to evolving threats and challenges. Pleasing everyone is practically impossible, but digital echo systems are growing, and artificial intelligence is and will be more common as time passes. Therefore, understanding the importance of the new reality in which we, as a society, become more technology dependent becomes necessary and not something that can be postponed any longer.  

• Interoperability and Standards: Establishing interoperable standards and protocols for DI is essential for enabling seamless and secure interactions across different systems and platforms. However, as previously explained, developing consensus around standards and achieving interoperability among diverse stakeholders can be challenging.  

• Jurisdictional Issues: DI regulation often intersects with jurisdictional issues, particularly in cross-border transactions and global data flows. Harmonizing regulatory approaches and addressing jurisdictional conflicts require international cooperation and coordination. This is even more difficult to achieve, putting the topic of DI at the “bottom” of many countries' and organizations’ priorities. DI will be effective only and always if global agreements are reached. The logic is that it will take a while to happen when, on the contrary, the “bad guys” are continuously attempting to compromise your personal data by accessing your electronic records. Another considerable dichotomy on this topic. We are reacting slowly to a severe issue, while on the other side; a substantial group of bad actors is increasingly attempting to gain access to your digital records.   

• Industry Self-Regulation: In many cases, self-regulation and voluntary standards significantly shape DI practices and norms. Industry-led initiatives and consortia may prioritize self-regulation over government intervention to maintain flexibility and autonomy in identity management. 

• Legislative Process and Political Dynamics: The legislative process in the USA can be lengthy and complex, with competing priorities and political dynamics influencing the development and passage of legislation. DI regulation may not always be a top legislative priority compared to other pressing issues; this is already happening.  

• Lack of Consensus: Stakeholders may disagree on the scope, objectives, and implementation of DI regulation. Balancing the interests of government agencies, businesses, privacy advocates, and consumers requires extensive dialogue and negotiation. 

• While DI regulation may still need to be fully established at the federal level in the USA, ongoing efforts are being made to address identity-related issues through existing laws, regulations, and initiatives focused on privacy, cybersecurity, consumer protection, and electronic transactions.  As digital technologies evolve and shape how individuals interact and transact online, the need for comprehensive and adaptive regulatory frameworks for DI will likely remain a priority for policymakers and stakeholders alike. 

How can DI in the USA be Improved? – General Considerations 

Improving DI in the USA requires a multifaceted approach. Developing comprehensive federal legislation focused on DI can provide a clear regulatory framework while balancing security and privacy concerns. Encouraging industry collaboration to establish interoperable standards and protocols is essential for seamless identity management.

Enhancing consumer education and awareness about DI risks and best practices can empower individuals to protect their identities online, and investing in research and innovation to advance secure authentication methods and technologies is crucial. Lastly, fostering public-private partnerships and international cooperation can promote harmonization and interoperability in the global DI ecosystem. In other words, there are multiple aspects and timelines the US government wants to manage to enhance DI.  

Specific Recommendations to Improve DI in the Private and Public Sectors in the USA 

Improving DI in both private and public sectors in the US involves several specific steps. Implementing robust identity verification processes, including multi-factor authentication, enhances security in both industries. Secondly, fostering collaboration between government agencies and private companies promotes the development of interoperable identity solutions. Thirdly, investing in secure digital infrastructure and technologies strengthens resilience against cyber threats. Fourthly, data protection measures and privacy controls should be enhanced to safeguard individuals' personal information. Lastly, promoting digital literacy and awareness campaigns educates citizens about protecting their digital identities. Together, these steps foster a more secure and trusted DI ecosystem in the US. 

Suggestions to Promote Digital Literacy in the Public and Private Sectors of the USA 

Digital Education is essential in promoting digital literacy in both the public and private sectors to empower individuals with the skills and knowledge needed to navigate the digital landscape effectively. Here are some recommended strategies and initiatives to foster digital literacy: 

• Educational Curriculum Integration: Collaboration between academic institutions and government agencies can ensure digital literacy is integrated into school curricula early. This involves teaching students fundamental digital skills, such as internet safety, critical thinking, and responsible online behavior. 

• Teacher Training and Professional Development: Providing educators with training and professional development opportunities equips them with the knowledge and tools to teach digital literacy concepts effectively. Workshops, seminars, and online courses can help teachers stay updated on emerging technologies and best practices. 

• Public Awareness Campaigns: Government agencies, non-profit organizations, and private companies can collaborate on public awareness campaigns to raise awareness about the importance of digital literacy. These campaigns can emphasize the risks of online misinformation, cyberbullying, and identity theft while promoting the benefits of digital skills. 

• Community Workshops and Training Programs: Hosting community workshops and training programs in libraries, community centers, and public spaces provides individuals of all ages with access to digital literacy resources. These programs can cover internet safety, digital privacy, online communication, and basic computer skills. 

• Online Learning Platforms: Leveraging online learning platforms and resources enables individuals to access digital literacy training from anywhere, anytime. Public-private partnerships can support the development of free or low-cost online courses, tutorials, and educational materials tailored to different skill levels and interests. 

• Digital Inclusion Initiatives: Addressing digital access and inclusion barriers is essential for promoting digital knowledge. Initiatives to bridge the digital divide, such as providing affordable internet access, distributing refurbished computers, and offering technology training to underserved communities, can help ensure equitable access to digital resources and education. 

• Corporate Training Programs: Private sector companies can significantly promote digital literacy among their employees through corporate training programs. These programs can cover cybersecurity awareness, data privacy best practices, and digital productivity tools, enhancing employees' digital skills and security awareness. 

• Partnerships with Tech Companies: Collaborating with technology companies and industry leaders to promote digital literacy initiatives. Tech companies can provide funding, mentorship, and technology to implement effective digital literacy programs. 

• Government Grants and Funding: Government grants and funding opportunities can support organizations and initiatives promoting digital literacy. Financial support for digital literacy projects, research, and community-based programs can expand access to digital education and resources for underserved populations. 

• Accessible and Inclusive Design: Designing digital literacy materials, platforms, and resources with accessibility and inclusivity ensures that individuals with diverse backgrounds, abilities, and learning styles can participate fully. Using plain language, multimedia formats, and assistive technologies can make digital literacy content more accessible to everyone. 

• Continuous Evaluation and Improvement: Shared responsibility, constant evaluation, and improvement are recommended, and commitment is mutual in digital literacy programs. Regular assessment is crucial in identifying strengths, weaknesses, and areas for improvement. Collecting participant feedback, measuring learning outcomes, and adjusting tactics considering participants' feedback and information analysis ensures digital literacy initiatives' continuous improvement and effectiveness over time. 

• Integration into Workforce Development Programs: A Call to Action for Workforce Development Professionals incorporating digital literacy training into workforce development programs prepares individuals for success in the digital economy. Skills such as digital communication, online collaboration, and information literacy are increasingly important in today's job market and can enhance individuals' employability and career prospects. 

• Engagement with Social Media and Online Communities: Social media platforms and public opinions can extend the reach of digital literacy initiatives and facilitate peer-to-peer learning and support. Engaging with online forums, groups, and communities focused on digital literacy allows individuals to share resources, ask questions, and collaborate with others on digital skills development. 

• Promotion of Lifelong Learning: Encouraging a culture of lifelong learning and curiosity fosters continuous growth and development in digital literacy. Stressing the prominence of remaining knowledgeable about evolving technologies, trends, and best practices encourages individuals to seek opportunities to enhance their digital skills on an ongoing basis. 

• Civic Engagement and Digital Citizenship: Teaching digital citizenship principles, such as online etiquette, responsible social media use, and digital rights and responsibilities, fosters informed and engaged citizens. Encouraging active participation in online communities, digital activism, and civic discourse promotes a sense of digital empowerment and social responsibility. 

Promoting digital literacy in the public and private sectors requires a comprehensive and multifaceted approach that addresses the diverse needs and challenges individuals and communities face. By investing in education, awareness, access, and inclusion, organizations and stakeholders can empower individuals with the abilities, understanding, and assurance needed to succeed in an increasingly digital world. Is this something that can still postponed? I do not think so. It is time to do it.  

(Please note that all opinions in this article are purely mine and have not been backed up or approved by the government).