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Originally published:

Israel's cyber directorate publishes draft national digital identity strategy, with a digital wallet

The Israel National Cyber Directorate has published a draft national digital identity strategy for public comment. It recommends keeping the infrastructure under state control, creating a national digital identity wallet and gradually opening the system to private entities, starting with finance and healthcare.

Israel's cyber directorate publishes draft national digital identity strategy, with a digital wallet
Image: Israel Defense (opens the source site in a new tab)

The draft was prepared by a steering committee set up in June 2025 at the request of the head of the directorate's Biometric Applications and Identity Unit. According to the document, digital identity should continue to rely on existing government infrastructure, mainly the Population Registry and the national identification system. The committee reviewed Belgium, Estonia, Australia, Britain, Singapore and the EU, and concluded that a centralized government model suits a small country better than a platform run by a private operator.

Alongside the government model, the draft proposes letting private entities join voluntarily and gradually, assessed on criteria such as public benefit, service risk level and the ability to meet technical and legal conditions. Relying on the system will not replace full Know Your Customer (KYC) procedures. A central tool is a national digital identity wallet where residents can store and present official credentials such as identity cards, with selective disclosure: proving a requirement is met without revealing every detail. Giving digital ID cards the same status as physical ones would require legislative changes.

The document also lists gaps: responsibility for identity components is spread across several government bodies, and verification procedures are not uniform. The committee writes that identity fraud and AI-generated forgeries require managing impersonation risk across the whole lifecycle of a digital identity. One question left open is AI agents acting on behalf of users: authorization, revoking credentials and oversight. A five-year implementation plan will be drafted separately, and the public is invited to comment.

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