A renewed focus on cybersecurity and user convenience is charting the course for Taiwan’s implementation of next-generation electronic identification.
In recent years, digitization has accelerated at an unprecedented rate, prompting governments worldwide to prioritize transforming their traditional information systems and operations. Fundamental to a fully digital society is the establishment of electronic identification (eID) platforms to improve governance, enhance security, and support economic growth. According to research conducted by McKinsey Global Institute, countries with full digital ID coverage could unlock the equivalent of between 3% and 13% of GDP value by 2030.
More than 150 countries have adopted some form of electronic identification (eID), with some moving swiftly to integrate digital systems. Estonia, for instance, pioneered electronic voting in parliamentary elections as early as 2007. Taiwan, however, has faced a far more complex path in developing its eID and digital wallet systems.
In 2005, Taiwan introduced the Citizen Digital Certificate, an early iteration of electronic identification that allowed users to access e-government services, file taxes online, and verify their identity for select legal and financial transactions. However, the system remained optional and never became fully integrated into everyday life.
A decade later, the government sought to modernize its national identification system as part of a broader digital transformation strategy, introducing chip-based national ID cards. The new-generation eID, initially set for rollout in January 2021, was designed to replace traditional paper-based IDs with a smart card embedded with biometric data and cryptographic security features. While the system promised to streamline public services, it faced fierce opposition over cybersecurity concerns, leading to significant setbacks in its development.
Such security concerns, largely driven by civil rights groups and cybersecurity experts, centered on data protection, the risk of government surveillance, and the centralization of sensitive information. In response to mounting criticism, the government temporarily halted the project, vowing to develop a more secure, privacy-compliant eID system and rebuild public trust.
The experiences of other countries could offer reassurance to skeptics. India’s national biometric eID system, Aadhaar, has been adopted by more than 93% of the country’s 1.4 billion people as of 2023. A 2019 survey found that enrollment was even higher among adults, with 95% reporting they used their Aadhaar ID at least once a month and 90% expressing some level of satisfaction with the program.
Singapore’s Singpass eID, in use since 2003, connects 97% of the population to more than 2,700 services across 800 government agencies and businesses. Meanwhile, Sweden’s BankID boasts a penetration rate of 99.9%, demonstrating the potential for near-universal adoption of digital identification systems.
The European Union has also moved forward with its own digital identification system, rolling out the EU Digital Identity (EUDI) following pilot programs across member states since mid-2023. With an ambitious goal of providing all citizens access to digital identification by 2030, the initiative reflects a broader global shift toward secure and standardized eID systems. Taiwan could follow suit by adopting a similar model to keep pace with international trends and establish a system that meets global standards.
Electronic identification systems have the potential to transform daily life, offering streamlined access to essential services while enhancing security. Their benefits ensure they remain a government priority, even as citizens gradually move from grappling with their inevitability to recognizing their convenience and practical applications. From banking and job applications to healthcare and online retail, eIDs simplify interactions while reducing fraud and cybersecurity risks.
Privacy concerns stall progress
When the Taiwanese government formally announced in 2018 its plan to replace traditional paper-based identity cards, the eID initiative was projected to cost NT$4.89 billion over the following decade. However, the project’s suspension amid growing concerns over increasingly sophisticated cyberattacks triggered a series of disputes over compensation between contractors and the government, further complicating its rollout.
In November 2020, in response to the proposed electronic national ID cards, more than 50 professionals, alongside the Taiwan Association for Human Rights (TAHR), filed a preventive injunction against the Ministry of the Interior (MOI), citing concerns over privacy and data security.
The lawsuit followed an earlier anti-eID petition launched in April 2020, in which the TAHR argued that the government had no legal authority to mandate eID implementation without first meeting three conditions: ensuring citizens retained the right to opt for a chip-less ID card, amending and strengthening data security legislation, and establishing an independent Privacy Protection Agency to provide oversight and accountability.
Until these conditions were met, implementation of eIDs would result in an affront to personal data security and allow for government collusion in ways that abuse data, the TAHR argued. In May 2023, Taipei’s High Administrative Court dismissed the case, ruling that the likelihood of the government invalidating older chip-less ID cards was low. As a result, the court found that the injunction did not meet the legal criteria for a “preventive nonfeasance” lawsuit, effectively ending the legal challenge against the eID rollout.
Despite setbacks, the MOI moved forward with digital identification efforts, launching the Mobile Citizen Digital Certificate (CDC) initiative in February 2022. The program introduced TW FidO (Taiwan Fast IDentity Online), a mobile application that replaces the need for a physical chip card or card reader. With TW FidO, users can authenticate their identities using biometric verification (facial or fingerprint recognition) on mobile devices. This system enables secure and convenient access to more than 238 integrated public services, a significant step toward broader digital transformation.
TW FidO was developed in accordance with global authentication standards set by the FIDO (Fast IDentity Online) Alliance, an international consortium focused on enhancing digital security through passwordless authentication. By leveraging public-key cryptography and biometric verification, FIDO standards help protect digital identity verification against phishing attacks and other cyber threats, ensuring a more secure and seamless authentication process.
In an interview, Karen Chang, chair of the FIDO Taiwan Regional Engagement Forum, emphasized that identity and authentication are fundamental to every online activity. She noted that Taiwan’s participation in FIDO forums reinforces its position as a leader in secure digital verification. According to Chang, Taiwan is home to more than 80 of the approximately 900 FIDO-certified products worldwide, highlighting the country’s strong presence in the field of advanced authentication technology.
The alignment of Taiwan’s FIDO Center with global FIDO standards underscores the country’s commitment to adopting international best practices in authentication and security. By integrating these standards, Taiwan aims to enhance the security and user experience of its digital financial services, reducing the risks associated with password-based authentication and keeping up with global digital identity trends.
TW FidO is now integrated into more than 170 government department systems, encompassing a wide array of services. Since December 2024, citizens can apply for a Mobile Citizen Digital Certificate at any household registration office nationwide. The application fee is NT$30 and citizens no longer need to carry a chip card on hand when applying. Instead, they only need to bring their mobile device.
A new era of IDs
Taiwan remains steadfast in its commitment to building a digital society that prioritizes citizen interests. A key step in this effort was the establishment of the Personal Data Protection Commission (PDPC) in December 2023, aimed at striking a balance between digital innovation and privacy protection.
At the time, then-Premier Chen Chien-jen emphasized that decisions regarding data protection for digital national identification would be postponed until the commission was in place. With the 2023 amendment to the Personal Data Protection Act, the PDPC now oversees the interpretation of personal data definitions and the enforcement of privacy regulations, reinforcing Taiwan’s dedication to safeguarding digital rights.
Additionally, in January 2023, under the leadership of former Minister of Digital Affairs Audrey Tang, Taiwan joined the World Wide Web Consortium (W3C) and two W3C working groups, including the decentralized identifier working group and verifiable credential working group.
In emailed responses to Taiwan Business TOPICS, the Ministry of Digital Affairs (Moda) said that the W3C serves as a vital multi-stakeholder organization that establishes open internet standards in the name of protecting digital human rights. By aligning with W3C decentralized identifiers (DID) and the Global Information Network Association’s Verifiable Credentials (VC), Taiwan can develop a digital identification system that acts like a door lock protecting our homes while sidestepping concerns over privacy breaches or insufficient security measures.
That same year, Moda announced plans to develop a digital identity wallet as part of the Digital Infrastructure Project for 2024–2027, following Taiwan’s collaboration with W3C. The initiative aims to create a decentralized identity system by implementing DID and VC standards, forming a secure and interoperable digital civic infrastructure consisting of an issuer, wallet, and verifier. By adopting this framework, Taiwan seeks to uphold digital human rights while streamlining identity verification for everyday transactions, reinforcing both privacy and efficiency in the digital age.
Moda also hosted an international digital wallet forum in 2024 to discuss creating a trustworthy and interoperable cross-domain digital wallet ecosystem in the lead-up to the beta eID launch. High-profile participants from FIDO, Google, OpenID, Digital Trust Association in Taiwan, Industrial Technology Research Institute, National Yang Ming Chiao Tung University, and Chunghwa Telecom contributed to open discussion on global applications of digital credentials, verification standards, and means to balance concerns of privacy protection with user convenience.
In order to receive widespread public support, the eID must be built on two pillars, Moda told TOPICS. Convenience is critical, where e-ID cards can be useful in a multitude of scenarios. Transparency is also key, with the government ensuring that data is not centralized and abides by international digital information standards.
On March 10, Moda introduced a prototype of its Taiwan Digital Identity Wallet. A public sandbox was launched at the end of March, with trial operations planned for December. In a press release, Moda said the eID will simplify everyday tasks like prescription pick-up and service registration, while enhancing privacy through user-controlled data sharing. Designed to align with international standards, the system also supports cross-border digital verification.
Minister of Digital Affairs Huang Yen-nun emphasized the wallet’s role in advancing Taiwan’s digital society, protecting digital rights, and enabling smart services. Moda is now calling for active public and private sector involvement to shape the system through workshops, regulatory discussions, and pilot applications.
