Taiwan to launch national digital wallet in December

By December this year, Taiwan’s Ministry of Digital Affairs (MODA) will do a limited release of its national digital wallet through a pilot programme.

The prototype of the Taiwan Digital Identity Wallet (TW DIW) was unveiled by the Ministry on March 10.  

TW DIW will allow users to securely store their digital credentials such as citizen digital certificates, national health insurance cards, driver’s licences and more. 

“In the future, people will only need their mobile phones to verify various credentials swiftly, simplifying processes such as ticket collection, prescription pick-up, and telecom service registration,” according to a statement by MODA.  

Before the pilot, the Ministry will launch a sandbox this month, as well as a series of seminars and workshops to refine the digital wallet system through nationwide test feedback and regulatory adjustments. 

As part of efforts to be transparent with citizen data, the Ministry will fully disclose the code to the public, media reports quoted the Department of Digital Cooperation Director-General, Chuang Ying-chih as saying. 

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Digital services for a digital society 

Taiwan’s Minister of Digital Affairs, Huang Yen-nun, highlighted three key aspects of the TW DIW. First, digital credentials will become the cornerstone of a digital society, forming the foundation for various services.   

In a promotional video from the Ministry, a Taiwanese man and his grandmother were shown performing daily errands, like collecting parcels, pharmacy prescriptions, and updating driver’s registration – all done with ease using TW DIW. 

The second aspect highlighted by the Minister was that individuals will have full control over their credential data, with selective disclosure mechanisms that enhance privacy and data protection. 

The video further detailed how the service quality in such day-to-day task improved as the TIW DIW provided a secure platform against potential fraud and identify theft.

The third point made by the Minister was that the interoperability of digital credentials will accelerate Taiwan’s transition into a smart digital society and boost the growth of the digital economy.  

The video concluded by showing the man and his grandmother browsing the TIW DIW for additional services like accessing insurance documents and purchasing concert tickets.

MODA placed emphasis on TW DIW’s capacity to streamline digital interactions in everyday life, offering more efficient and secure digital services. 

“By fostering close collaboration across government agencies and public-private sectors, MODA aims to build a robust digital authentication and authorisation ecosystem, laying a strong foundation for digital transformation and innovation in Taiwan,” said the Ministry. 

Digital wallets go global 

Governments across the globe are looking towards digital solutions as a means to enhance the quality of life for its citizens. 

The EU passed a legal agreement last year for the implementation of its own version of a digital identity wallet, eIDAS 2, slated for release in 2026. 

In Singapore, over 41 million transactions are carried out every by 5 million users on its version, Singpass, for access to over 2,700 services across 800 government agencies and businesses since it was launched in 2018.

However, this global shift comes with its own risk as public sector officials devise the best way to make this transition where other national interests are concerned. 

Widely regarded as one of the most digitally forward countries, Estonia was among the first in the world as early as 2002.  

The nation’s system which is integrated into numerous functions for healthcare, banking, public transport, business contracts, and voting, was shut down in 2017 leaving 760,000 people without access to online services. 

MODA said that the TW DIW initiative underscores the state’s commitment to digital human rights while reinforcing its critical role in global digital cooperation.  

As trade and commerce platforms become more digital, 2022 World Trade Organization report on Global Digital Identity highlighted the impetus for a digital ID system that can operate across borders.  

“The TW DIW is designed to comply with international standards and supports global cross-border digital verification,” said the MODA. 

In Taiwan, the MODA has been employing artificial intelligence (AI) and machine learning (ML) tools to combat online fraud and cyberattacks, in its push to advance the country’s digital government ambitions. 

“MODA remains dedicated to driving digital transformation, improving public engagement with digital services, and achieving the dual goals of digital sovereignty and security,” said the authority,” said the authority.