Romanian authorities have announced plans to reduce the number of digital identity cards previously intended for free distribution amid the European nation’s fiscal crisis.
Romania will reduce the distribution of free digital IDs from 5 million to 3.5 million. The move follows a budget cut of $24.6 million from the original $82 million earmarked for the ambitious digitization project, with the Ministry of Interior aiming to “streamline the use of funds.”
Under the memorandum published by the ministry, authorities disclosed that the budget cuts are justifiable in the face of the country’s “systemic fiscal risk.” They added that the move stems from low public interest in receiving the free digital ID.
Early in the year, Romania began issuing digital IDs to citizens with support from the European Union’s Recovery and Resilience Plan (PNRR). Details of the agreement stated that Romania will have to issue five million digital IDs to its citizens for free before June 2026, a milestone unlikely to be met following the budget cuts.
Since launch, the country has issued a total of 436,674 digital IDs to citizens, a far cry from its original targets.
Apart from distributing free digital IDs, Romania is expected to develop and roll out 11 online public services and launch a national awareness campaign. However, only four of the 11 online public services have been completed, with the remaining seven still in the works, with no clear date for mainstream launch.
Following the delays, Romania may face a €264 million ($310 million) penalty from the European Commission if it fails to meet its digital ID targets. Industry experts say the fine may exacerbate the current fiscal crisis faced by the country while the government mulls solutions to sidestep the sanctions.
Still embracing emerging technologies despite roadblocks
Despite the budget cuts, there are plans to launch national caravans to promote the digital ID and allow online document registration to ease the process. Romanian citizens have cited long queues at registration offices as part of the reasons for their reluctance to obtain the digital ID.
While the country groans under a fiscal crisis, authorities are utlizing advanced technologies as a solution to improve its local economy. In late 2024, the country tapped blockchain technology to monitor its presidential elections, setting the pace for the EU.
The country is also leveraging artificial intelligence (AI) to make policy decisions with the rollout of an AI chatbot that scours social media posts of citizens. Amid the rapid pace of integrating emerging technologies, Romanian authorities are particularly keen to align their approach with EU objectives, putting safety and privacy at the top of their priorities.
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Costa Rica formalizes digital ID use
Elsewhere, Costa Rican authorities have announced the nationwide launch of a digital ID mobile application for citizens as part of the country’s ongoing digitization efforts, which was developed in partnership with the Korea Minting, Security Printing & ID Card Operating Corp (KOMSCO).
Costa Rica entrusted KOMSCO with the development of the technical architecture of the digital ID app.
The Identidad Digital Costarricense (IDC) mobile app will contain the digital version of the traditional national IDs, with authorities highlighting its range of functionalities. Developed by the Supreme Electoral Tribunal (TSE), Costa Ricans will apply for the IDC-Ciudadano app by submitting their national ID number and facial biometrics to confirm identities.
Xenia Guerrero Arias, TSE’s General Director of Technological Strategy, stated that the initiative forms part of broader efforts to digitize the electoral tribunal while enhancing services available to citizens. Arias disclosed that the digital ID will operate alongside the traditional physical IDs, with new security features being the significant difference between the offerings.
“The main difference is that it’s a digital document with important security features based on international standards, and it uses biometrics to download, activate, and access it,” said Aria.
Following rollout, authorities are eyeing massive adoption levels for the mobile digital identity app. Public authorities like the police are mandated to accept the IDC, while financial institutions were given a similar directive.
Meanwhile, the TSE has disclosed that financial institutions will have access to a specialized app to integrate the digital ID in the customer verification process.
While some countries are adopting free distribution, Costa Ricans will have to pay around $5 as an application fee to download the IDC-Ciudadano app. However, the digital ID is only valid for four years and will not be used for the upcoming national elections scheduled for February 2026.
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Playing catch-up with regional players
Costa Rica has consistently expressed its intention to integrate emerging technologies into strategic sectors of the economy, achieving a third-place ranking in digital readiness within Latin America in 2019. To continue with its quest to become a financial hub for the region, Costa Rican lawmakers pushed for digital asset taxes to be removed in 2022.
Elsewhere in Latin America, adoption of emerging technology continues, with Argentina’s Buenos Aires issuing blockchain-based digital IDs to nearly 4 million residents. Brazil is also making progress with its national digital ID project, while Uruguay, Colombia, and Peru are setting the pace with advanced security features in their local offerings.
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Watch: What can organizations do to get on the Web3 & digital identity bus?
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Source: https://coingeek.com/romania-scales-back-digital-ids-as-costa-rica-unveils-new-app/