As the United States increasingly relies on digital systems to power its economy, government, and daily life, the importance of having a robust and secure digital public infrastructure (DPI) has become evident. DPI encompasses foundational digital systems and services that enable everything from online communication to secure transactions.
At its core, a secure and unified approach to digital identity is essential for the success of any DPI initiative. And in a landscape that is plagued by fragmented identity systems, rising cybersecurity threats, and mounting economic losses from fraud, building a secure digital identity infrastructure offers a path toward a more resilient and inclusive digital ecosystem.
Currently, however, the U.S. lacks a cohesive approach to digital identity. While multiple federal and state agencies issue various forms of identification, such as Social Security numbers, driver’s licenses, and passports, these systems are not designed to meet the demands of the digital era. The fragmented nature of identity systems leaves individuals and organizations vulnerable to inefficiencies, redundancies, and security breaches. A modern, secure digital identity system could address these challenges by providing a reliable way for individuals to verify their identities in digital spaces, ensuring privacy, security, and accessibility.
“There is general agreement that some version of DPI could be a useful element to strengthen the U.S. digital ecosystem,” according to a New America report that examines a DPI infrastructure for the digital age. “However, experts’ analyses of whether DPI could work in the United States — and what that would look like — vary based on differing interpretations of DPI, the pain points it seeks to address, and available alternatives.”
According to the report, “there are widely differing views on what deployment of DPI in the United States could look like,” One view espouses DPI that is federally managed across all states, possibly with a national-level council defining the priorities for a national DPI stack. Another perspective sees a fragmented rollout — one project, state, or functionality at a time and/or possibly even through competing companies or standards — as more realistic. For identity verification alone, experts suggest different approaches, such as partnering with banks, building on top of the country’s existing national identity infrastructure (i.e., a driver’s license or Social Security number), or looking at emerging standards for wallets and verifiable credentials.
The New America report’s authors said “the answer may hinge on unresolved questions about the ultimate objectives of DPI, in terms of which individuals and sectors could benefit. A major point of tension … is whether DPI is meant to facilitate digital government services, be a conduit for both private and public sector activities or support any digital ingredient of a functioning democracy.”
“Moreover,” the report says, “there are significant concerns over whether DPI will lay the groundwork for a more competitive tech ecosystem, allowing sectors and entities of different sizes to pursue opportunities on more equal footing or, conversely, whether it will have unintended consequences by facilitating new monopolies, distorting the market, or weakening the government’s tax base. Meanwhile, critics question the utility of investing in DPI in the United States given existing solutions and the relatively low proportion of people who lack access to an official identity or to financial services, compared with countries where DPI is gaining traction as a population-wide approach to providing public services and programs.”
Cybersecurity threats have further underscored the urgency of a secure digital identity system. Data breaches involving personal identity information are increasingly common, with malicious actors exploiting weak and disconnected systems to commit fraud and identity theft. The financial implications are staggering. Identity theft and fraud cost the U.S. economy billions of dollars annually. Implementing a standardized, secure digital identity framework as part of a broader DPI effort would mitigate these risks by offering robust methods of authentication and verification.
In addition to addressing cybersecurity challenges, a secure digital identity system could enhance social inclusion. Millions of Americans, particularly those in marginalized communities, lack access to reliable identity documentation, which limits their ability to participate fully in the digital economy or access essential services. A well-designed digital identity infrastructure could bridge this gap, providing secure and accessible credentials to everyone, regardless of socioeconomic status.
According to the New America reports, a digital identity-focused DPI would need to prioritize several key features to achieve its goals. Interoperability would be critical, ensuring that digital identity systems could seamlessly integrate with state and private sector services while remaining flexible enough to accommodate different use cases. Privacy must be a foundational principle, with systems designed to minimize data collection, decentralize information storage where possible, and enforce strict access controls.
Security would be paramount, leveraging technologies like advanced encryption, biometrics, and blockchain to protect against breaches. Accessibility would also play a crucial role, with solutions tailored to populations that lack access to smartphones or stable internet connections. Finally, user control would be essential, allowing individuals to own and manage their digital identities, including the ability to modify, revoke, or transfer permissions for their data use.
The benefits of a secure digital identity system extend far beyond cybersecurity. For public services, such a system could streamline delivery, reduce administrative costs, and improve user experiences in areas like healthcare, taxation, and voting. For the private sector, standardized and secure digital identity systems would reduce the costs associated with identity verification and fraud prevention, while also enabling new opportunities for innovation and efficiency in e-commerce.
During crises, such as natural disasters or pandemics, a digital identity system could expedite the distribution of aid by providing reliable means to verify eligibility and track resource allocation. Most importantly, a secure digital identity system would empower individuals, giving them the tools to navigate and thrive in the digital world without relying on outdated or fragmented processes.
Implementing a digital identity infrastructure in the U.S. would require a multifaceted approach. At the policy level, federal legislation would need to establish standards for digital identity and delineate the roles of government agencies, state authorities, and private entities. Public-private partnerships could accelerate development and deployment by combining private sector innovation with government oversight.
Technological advancements, such as blockchain for secure decentralized systems and biometric verification for enhanced security, would form the backbone of this initiative. A phased rollout would ensure that the system is tested and refined before nationwide implementation, starting with pilot programs in sectors like healthcare and financial services. Public education campaigns would also be vital to build trust and ensure that individuals and organizations understand the benefits and proper use of the system.
Despite its potential, building a secure digital identity system within the DPI framework would not be without challenges. Privacy concerns are likely to arise, as individuals may fear misuse or overreach in data collection. To address these issues, the U.S. could adopt privacy laws like the European Union’s General Data Protection Regulation (GDPR), ensuring transparency and accountability in data practices.
Cybersecurity risks would also demand ongoing attention, with systems requiring regular updates and audits to stay ahead of emerging threats. Equity concerns, such as ensuring access for underserved populations, would necessitate careful planning, including subsidies for technology and offline-compatible solutions. Political resistance could pose another obstacle, but bipartisan support could be garnered by highlighting the system’s economic and security benefits.
To succeed, the New America report concludes, the U.S. must carefully define the objectives of DPI while balancing the needs of individuals, businesses, and government agencies. Drawing on international best practices, fostering public-private collaboration, and addressing underlying issues such as privacy and trust will be critical. Thoughtful planning, public-private collaboration, and a commitment to individual rights and security also will be essential for the success of building out a DPI infrastructure.
Still, by leveraging its strengths as an innovative and forward-thinking nation, the U.S. can build a DPI framework that not only addresses today’s challenges but also lays the foundation for a more resilient, inclusive, and competitive digital ecosystem.
“Fortunately, to help chart its course toward a healthier ecosystem, the United States can draw on the expanding body of evidence from DPI projects and initiatives around the world,” the New America report says.
Article Topics
cybersecurity | digital economy | digital ID | digital identity | digital public infrastructure | government services | standards | United States
