European Central: The Swiss Digital ID System Exemplifies How Trust Begets Effective Policy

KEYSTONE

Once upon a time, a Swiss bank required many physical documents to access their services. A valid, government-issued ID, proof of residency in Switzerland, and evidence of a source of funds all once had to be physically taken in person to a banker. But after a September 28 referendum, those days will soon come to an end. 

In a narrow vote, Swiss citizens voted 50.4% in favor of introducing government-issued digital IDs through 2026. These IDs would be used for everything from getting a telephone contract and proving your age at a liquor store to doing business with banks and accessing government services.

For the Swiss, privacy and data protection have long been paramount. This is partly why the first attempt at this legislation in 2021 failed, as that setup had private companies run the system instead of the government-run one that passed in September. 

But this program is not the first in Europe, especially with the U.K. instituting a similar system days before the Swiss referendum. So what does the Swiss model do differently, and what does it say about trust in institutions at a time where that trust is more fragile than ever?

Privacy Is As Swiss As Chocolate And Watches

For starters, the Swiss program is a voluntary one. Unlike the U.K. system which will require a digital ID for working people by 2029, the Swiss ID is one that is both free and isn’t necessary for access to employment or services. Additionally, the Swiss ID will only serve to prove identity, like a physical identity card, as opposed to systems like the EU Digital Identity that also allows for creating binding signatures and sharing digital documents. 

The voluntary aspect of the Swiss ID follows the trend that other European nations have set when it comes to digital IDs. By the end of 2026, all EU nations will be required to have a digital wallet available for their citizens, and some nations have been well ahead of the curve. 

Estonia has had e-ID cards for over 20 years to allow online voting, document signing, and government service access. Ukraine also uses its Diia app and website to store important digital documents and access state services. Both of these systems are widely used and very popular.

Privacy and data protection are important issues to the Swiss, and their dedication to protecting privacy is so legendary that it is even enshrined in their Constitution. Article 13 specifically states two main assurances:

1. Every person has the right to privacy in their private and family life and in their home, and in relation to their mail and telecommunications.

2. Every person has the right to be protected against the misuse of their personal data.

As a result, all Swiss companies and service providers must explicitly ask for permission to be able to process your data, as long as you are a Swiss resident. But there are also multiple comprehensive laws that back up Article 13, such as the Swiss Federal Act on Data Protection, which tightens the rules around data privacy and ensures greater clarity in the handling of personal data by companies.

The Swiss banking industry once was famously anonymous, and while the country has taken steps towards accountability in its banking system, privacy still remains a top priority. The Swiss even restricted Google Street View from what they could and could not show on Google Maps.

This dedication to privacy is why the first 2021 e-ID referendum failed, as there simply was not enough trust in private companies to protect sensitive Swiss data. But the second time around, the debate was far closer than before. 

A Swiss-Style Security

Critics of the e-ID system cite a number of potential risks. Firstly, there still exists a threat of bad actors getting access to sensitive data. When the program was first put forward in 2021, cyber-security groups in Switzerland worried about the risks of having a centralized data repository. Centralized data centers are more vulnerable to cyberattacks because if an attack is successful, a single threat could compromise and block the entire system. 

Another worry has been the misuse of data, where the system reveals more information than is needed in a transaction, and that data is used for targeted tracking or marketing. 

However, the 2025 Swiss version of this e-ID system has taken these concerns to heart. The e-ID should only reveal the information required in each case. Additionally, the government has added a layer of protection by having biometric data (including fingerprints) only be stored on the users’ smartphones, and that an agency seeking a person’s information will only be given access to specific, need-to-know details decided by that person.

Experts working with the government are also prioritizing the “unlinkability” of a user moving across the web, lending credence to the e-ID program’s security.

The proponents of e-ID systems emphasize the importance of these measures at a time where cyberattacks are becoming a more frequent reality across the world, but they also see myriad other benefits outside of an efficient navigation of bureaucracy.

A 2019 report by McKinsey Digital found that digital IDs could save 110 billion hours globally by streamlining government services, and by extension save over $1.6 trillion through fraud reduction. With the rise of AI, proponents also see this ID system as a bulwark against bots attempting fraud or spreading misinformation. 

One final point that critics raise is that older generations are generally less digitally adept, and thus creating a digital ID system that “locks out” the elderly. In Switzerland, this is less of an issue, both because of the voluntary nature of its program and because a recent poll found that 88% of 65-74 year-olds have basic digital skills.

But the older, more conservative bases across Switzerland generally still expressed mistrust regarding the program, a mistrust that has extended towards many institutions since the COVID-19 pandemic.

Trust Between Government And Governed

In an age increasingly filled with online bots, misinformation, and electronic fraud, a proposal like the Swiss e-ID system should, in theory, come with a lot of opposition. Trust in national governments is, after all, in a rut across Europe.

But in 2023, 62% of Swiss people reported high or moderately high trust in the federal government, well above the OECD average of 39%. This stands in stark contrast to the U.K.’s 27% metric, one that has continually fallen over the years.

There are several obvious reasons why the Swiss government is more trusted than others. One is economic stability, as the Swiss franc ranks fairly high in stability and poverty is relatively low by EU standards. But another main driver is the Swiss militia system, which lends additional inter-connectivity by encouraging people to assume public responsibilities like working in fire brigades, on school boards, or in parliament.

When it comes to digital IDs, this level of trust is crucial to the success of the system. Swiss voters had concerns about the private sector-led initiative in 2021, so the government took charge. Advocacy groups had worries about the centralization of data, so the government kept the extra sensitive data on the user’s devices and updated its digital privacy laws to meet the moment. 

By moving slowly, thoughtfully, and in cooperation with a populace that it has spent time building a relationship with, the Swiss government stands to gain much from a digital ID system. There are still issues, and there will certainly be bugs to fix as time goes on. But by prioritizing the safety of its citizens' privacy, accessibility, and transparency, having an entire infrastructure of trust built over time compounds, and leads to effective governance.