The NSW Government is working through the issues of a broad scale digital ID system. 

The government will pilot its first “verifiable credential” later this year, reports say, but it has faced several digital identity proofing issues that will need to be solved. 

In 2020, the NSW Government said it was working on a ‘copy solution’ for digital driver’s licences (DDL) so that they can be used outside of police checks and licenced venues.

Businesses need to take copies of a DDL instead of a photocopy of a physical licence, such as when buying a phone, hiring a car or taking out a loan.

But the NSW Government could not find a workable solution that allows copies of digital licences to be made while preserving privacy and reducing the risk of identity compromise.

“Ultimately, a paper copy of the DDL is not an end-to-end digital product… a copy solution is a paper sandwich, and therefore a short-term solution,” digital minister Victor Dominello said at the time.

Service NSW then began working on a validation solution to hide unnecessary information depending on the identity requirements.

Over 18 months later, there is still no answer to the “paper sandwich” issue.

The NSW Department of Customer Service says it is planning to pilot a “verifiable credential” in the coming months.

“The first pilot program for a verifiable credential will take place later this year,” a spokesperson has told reporters. 

The department insists that the use of verifiable credentials and digital identity solutions will be opt-in. 

Storming ahead, Mr Dominello says the government will offer decentralised credentials to give citizens greater control of their digital identity.

The authorities are working on a personalised digital wallet to allow NSW residents to manage and share their credentials, and verify the credentials of others.

Service NSW is also planning to embed face verification technology within its digital channels so that customers can prove their identity through a face scan.

Reports say the government has shortlisted a number of software options face matching.