Germany’s Fortress Wallet: A Lesson for Europe

Europe’s digital identity project is at a crossroads. Under eIDAS 2.0, every Member State must deliver a high-assurance eID by 2026 and a national EUDI Wallet by 2027. On paper, it’s a harmonisation effort. In practice, the paths diverge.

Germany has unveiled one of the most ambitious wallet blueprints in Europe. But the design raises an uncomfortable question: is this a model for the Union—or a fortress Germany builds for itself?

The Weak Link: eID Adoption

Before looking forward, let’s look back. Germany’s existing Ausweis eID, introduced in 2010 and enhanced in 2016, has never taken off.

• Around 35 % of citizens have activated the eID function.
• Only about 22 % have ever used it.
• For nearly a decade, penetration has hovered at 20 % or below.

These numbers reveal a hard truth: technical availability does not equal citizen adoption. Ease, trust, and use cases drive usage—not architecture alone.

Inside Germany’s Wallet Design

The German EUDI Wallet is not a lightweight app. It is a national trust stack with multiple engineered components:
Wallet App on the citizen’s device, anchored to a hardware-backed keystore.

• Wallet Provider Backend plus remote WSCD/KMS to handle secure cryptographic operations.
• PID Provider & eID Server to issue the root credential, the Person Identification Data (PID).
• Platform Attestation to guarantee the wallet runs on uncompromised hardware.
• Relying Party interfaces to banks, government services, and enterprises.

This is state-level engineering: expensive, sophisticated, and deeply integrated with Germany’s regulatory fabric.

The BSI Factor

At the centre sits the Federal Office for Information Security (BSI)—an institution uniquely positioned to:

• Write the rules (technical guidelines and standards).
• Enforce compliance (supervision and certification).
• Oversee implementation (direct input on architecture and security).

Few Member States can match this concentration of authority. For Germany, it’s a strength. For others, it highlights the growing gap in capacity.

Why Smaller States Can’t Copy This

Most Member States cannot replicate Germany’s fortress wallet for three reasons:

1. Scale and cost – Remote cryptographic services, attestation, and continuous supervision demand sustained investment.
   
   
2. Institutional capacity – Few have a “BSI-equivalent” that can regulate, supervise, and build.
   
   
3. Regulatory flux – With eIDAS implementing acts still evolving, early investments risk misalignment with final EU rules.

For smaller states, the only viable path will be EU-funded reference wallets, regional cooperation, or regulated private solutions.

The Perception Risk

Germany’s approach is technically impressive. But it risks being perceived as “Germany doing its own thing.”

That perception matters. The promise of eIDAS 2.0 is cross-border interoperability and mutual trust. If the largest Member State is seen as setting its own course, smaller states may delay adoption—or wait for Brussels to deliver a different blueprint.

ZealiD’s View

At ZealiD, we see both opportunity and risk:

• Opportunity – Germany’s wallet shows what’s possible when a state commits resources and authority. If shared openly, it could anchor Europe’s ecosystem.
  
  
• Risk – Without alignment, fortress wallets will fracture the project, leaving smaller states dependent and citizens underserved.

The lesson from the Ausweis eID is clear: penetration will not come from architecture alone. Citizens need ease, trust, and compelling use cases. If Europe is to succeed, wallet design must be open, modular, and interoperable—with strong support for smaller states.

Conclusion

Germany’s EUDI Wallet is a bold step, but also a reminder: Europe cannot afford 27 divergent fortresses.

The Union’s challenge is not only to build wallets, but to ensure they are adopted, trusted, and interoperable across borders. Without that, the EUDI project risks repeating the Ausweis eID story—technically sophisticated, politically ambitious, and barely used.

About ZealiD

ZealiD is an EU Qualified Trust Service Provider offering identity wallets and qualified electronic signatures across Europe. We are a certified Microsoft ISV Partner and trusted by financial institutions, Fortune 500 companies, and national governments.