USA: Improving Digital Identity Act of 2023

1. Overview

The Improving Digital Identity Act of 2023 was introduced in order to solve the very real issue with current digital identity systems. It is a major bill designed to improve and simplify digital identity systems. With growing demand for secure and trustworthy online identification, this act was introduced with the aim of creating an overarching framework to help improve the management and verification of our digital identities. This week, an examination of how we arrived here and what the bill is trying to accomplish.

2. Scope

It acknowledges the significance of digital identities in numerous industries such as finance, healthcare, and public services, and tries to develop a stronger and more accessible system. The Act tries to establish national standards for verifying online identity, but in a way that encourages user privacy and data protection.

Important provisions

3. Important provisions

• identifying the government agencies issuing identity credentials or holding information used to identify an individual
• defining resources or dollars needed to support government agencies in adopting digital identity verification.

4. Sanctions and Implementation

Additionally, the Office of Management and Budget (OMB) must issue guidance to federal agencies for the purpose of implementing task force recommendations, and federal agencies must annually report on implementation activities. The OMB must also report on federal digital identity capability implementation and effectiveness in collaboration with the Cybersecurity and Infrastructure Security Agency.

5. Significant Cases or Precedents

Because the Act is so recent, there have been no major cases or court precedents to speak of. 

6. International Comparison

The Act aligns with global initiatives to enhance digital identity systems, such as those of the European Union and Australia. It is, however, less regulatory, with more focus on coordination and strategy-making than on the imposition of hard rules.​

7. Practical Implications

For Government Agencies: Need to work with the task force and embrace recommended strategies for digital verification of identity.​

For the Private Sector: Possible collaboration with the government in creating and employing safe digital identity solutions.​

For Individuals: Improved security and privacy when conducting transactions online, with enhanced access to services requiring verification of identity.​

8. Future Outlook

 Future developments can include the development of new technologies and standards, as well as prospective legislative updates to address future challenges in digital identity authentication. The Act sets the foundation for a safer and interoperable U.S. digital identity system.