Digital Identity in the U.S: The Future of Secure Systems

But what exactly is digital identity? Our digital identity is made up of various data points that represent who we are—from the basic information found on our driver's licenses, such as name, age, address, height, and weight, to the degrees we've earned, the training we've completed, the skills we possess, and the professional licenses and affiliations we hold. Digital credentials allow us to build this identity, offering a holistic perspective at any time. These credentials give individuals autonomy, enabling more secure and efficient interactions with the government.

We spoke with Trevor Cornwell,  Merit’s President of Government Affairs, to explore how digital identity systems will transform citizens' interactions with the government.  Trevor brings extensive experience in political strategy and business leadership. He has been featured in publications like Fortune and The New York Times and has played key roles in U.S. political campaigns.

Q1: We often hear about digital credentials' potential to transform the workforce. How can we ensure digital credentials streamline job placements and enable workers to reach their full economic potential?

Trevor Cornwell: “Digital credentials enable workers to work more quickly and programmatically find jobs while also allowing employers to find them. It’s about making intelligent decisions on what information you’ll share, how you’ll share it, and how to protect it. These are critical issues. While we might start by focusing on something like driver’s licenses, the real question is: where can we have the most profound impact?

For workers, it’s about communicating credentials efficiently to access employment opportunities. Ultimately, we want citizens to find their highest and best use, maximizing their economic potential. When they can’t share credentials, they are being limited in their ability to do so.”

Q2: Slow worker verification processes are probably the most glaringly apparent bottleneck in many industries. With digital credentials offering a faster alternative, what are some of the broader economic impacts we could see for both employers and state economies if verification times are reduced?

Trevor Cornwell: “A digital credential helps individuals by allowing them to start work sooner. But who else benefits? Employers do—because they don’t have to wait an average of 41 days for worker verification. There’s a real opportunity cost there.

The state also suffers when the verification process is slow. They miss out on tax revenue from both the workers' earnings and the economic output generated by the companies employing them. So, this inefficiency affects the entire economic system, costing time, money, and productivity.”

Q3: Digital licenses in the U.S. have made strides, but what are the current limitations, and how can we improve interoperability to enhance their effectiveness?

Trevor Cornwell: "In the U.S., we’ve focused on transitioning traditional documents like driver's licenses into digital formats, with about 14 states and Puerto Rico now allowing digital driver's licenses. However, this approach has significant limitations. While states like California permit you to store your license on your phone, it doesn’t facilitate meaningful interactions or interoperability between jurisdictions.

In contrast, Europe is advancing in interoperability, allowing a license from one country to be recognized and used in another seamlessly. This is vital for creating a robust digital infrastructure where systems can communicate effectively. The European Interoperability Act is a prime example of this initiative, driving a standard the U.S. currently lacks. To truly maximize the potential of digital licenses in the U.S., we need to prioritize creating systems that support cross-jurisdictional functionality, enabling citizens to navigate seamlessly between states or countries with a single credential.” 

Q4: What are some barriers citizens may face if governments don’t implement interoperable systems for digital credentials? 

Trevor Cornwell: “Growing up in a small town, my parents could go to the bank, and they knew the banker. However, in that charm, many people were left out of that system, who couldn't get their work verified, didn’t know the banker, and could not buy a home. We lost a tremendous amount of economic opportunity. That same thing is happening today with not having an interoperable system. Individuals cannot get to work, and even within states, it’s lacking. For example, if someone in the Painters Union needs to go onto a ship just offshore, you're going home if you don’t have all your credentials to get to work. That job may not be there tomorrow, and that has a huge impact on the worker. These are all solvable problems.”

Q5: Legislative efforts surrounding digital credentials have faced challenges, particularly in permissioning. How can states navigate these concerns while ensuring citizens have control of their digital information?

Trevor Cornwell: “You can see what's going wrong if you drew a heat map around legislative efforts that haven't been successful because that's where states are struggling. A lot of this centers on permissioning. About six states have consumer protection laws, and they're worried about bad actors taking information that belongs to someone else. This is critical because the information we have—whether health records, workforce education, or transactions—represents the essence of our identity. What we show to others tells our story, and that narrative forms the bonds we create—the right of citizens to decide what they share, with whom, and when is essential. 

For example, a union worker might have the same welding credentials, but they might not want to share their union affiliation in a right-to-work state. Figuring out these permissions is where legislation needs to focus, and we’re at the crossroads of how to ensure that digital records are safe. Citizens maintain control over their own stories.”

Digital credentials have the potential to revolutionize government operations by speeding up job placements, enhancing verification processes, and streamlining workflows, ultimately creating greater economic opportunities. As Trevor highlighted in our interview, there is still work to embrace digital identity fully. The key to overcoming these barriers lies in integrating interoperable systems that enable citizens to share their credentials across states, agencies, and jurisdictions seamlessly so that wherever they go, their credentials can go with them.