The digital identity sector is pressing the UK government to revise its upcoming data legislation and adjust policies surrounding the Gov.uk Wallet, following its announcement by technology secretary Peter Kyle. An open letter to Kyle highlights concerns from groups representing online safety and age verification technologies, warning that the wallet's intended use for commercial purposes could create a government monopoly, stifling innovation and driving up taxpayer costs. An independent study further supports these worries, forecasting substantial growth in digital identity app usage, predominantly favoring government over private sector solutions.
The launch in January of the government's digital wallet "sent shockwaves through the sector," raising concerns among suppliers about its impact on competition and innovation.
We are concerned about the inadvertent creation of a government monopoly in digital identity - one that could stifle innovation, limit consumer choice and impose billions of new costs.
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