• Telefónica Tech has introduced a verifiable-credentials-based identity solution aligned with the forthcoming EU Digital Identity Wallet framework.
• The rollout raises questions about interoperability, actual user control, and whether enterprises will adopt the technology beyond regulatory compliance.
What happened: Telefónica Tech moves early to align with Europe’s new digital identity era
Telefónica Tech, the digital business division of Spanish telecommunications group Telefónica, has launched a self-sovereign identity (SSI) tool designed to help organisations issue, verify and manage digital credentials in a way that purports to place control over personal data in the hands of users themselves.
The solution is based on verifiable credentials, a technical standard that allows information such as identification, certifications, qualifications and access rights to be digitally certified and securely stored on a user’s device. Under SSI principles, individuals can choose which data to share, when and with whom — for example, proving age without disclosing full identity details.
Telefónica says the tool is mainly aimed at businesses and public bodies seeking to adapt to the European Union’s new legal and technical framework for digital identity. The reference point for this framework is the EU Digital Identity (EUDI) Wallet, which is slated to be introduced in all member states by the end of 2026.
Organisations would be able to issue digital credentials — for instance, a civil registration or proof of residence — which users could then present via scanning a QR code with their device. Telefónica Tech has also bundled professional services and blockchain-based traceability tools, such as its TrustOS service, to help clients deploy and manage the technology.
Telefónica frames SSI as a shift in personal information management that gives citizens and employees more control over their data in digital interactions. However, the tool’s success will depend on actual uptake and integration by both public and private sector organisations, as well as its interoperability with evolving EU standards.
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Why it’s important
The introduction of this tool by Telefónica Tech reflects a broader industry trend towards decentralised identity systems in anticipation of regulatory changes. Self-sovereign identity has been championed by privacy advocates and standards bodies for potentially reducing reliance on centralised identity providers and improving data minimisation.
For European organisations, compliance with the EUDI Wallet framework — part of the EU’s push for interoperable and secure digital identity solutions across member states — will be a major driver of digital transformation in the coming years. Telefónica’s solution aims to position its customers ahead of these requirements.
Yet there remain unanswered questions about self-sovereign identity’s broader benefits and challenges. Skeptics point out that interoperability between solutions from different vendors, implementation costs and real control versus vendor-defined constraints are still unresolved issues in the SSI landscape. There is also ongoing debate over how effectively SSI can be deployed at scale, particularly outside regulated environments.
