The battle for cash is not a conspiracy, for the major banks are keen to see it gone, to be replaced by a Central Bank Digital Currency (CBDC). Prior to the introduction of that there will need to be the establishment of an Australian national digital identity.
The big banks have all said that this will be more “convenient” (for them, of course), and for people connecting their banking ConnectID, myGov, and state government apps. As far as I understand it, this can be done without an Australian national digital identity, but any excuse will be given for this until it is pushed in. The government consultation on the Digital Identity Bill 2023, has ended and the Bill will be introduced into parliament within the next few months, unless a massive public backlash against it can end it, or at least slow it down, as has been done with the equally evil, Misinformation and Disinformation Bill.
The National Australia Bank (NAB) is supporting a push for a nationwide digital identity, claiming it will provide "more convenience" for Australians.
The news comes amid a push from the Australian government to legislate the system either this year, or early next year.
The bank believes an "interoperable digital identity ecosystem" is needed for Australians to connect their banking ConnectID, myGov, and state government apps.
NAB said industry and community-led digital ID solutions will "complement and extend" the reach of government digital ID services.
It added that the "success of the Australian system needs banks," noting that not all parts of the community want to use a government digital ID.
NAB digital executive Brad Carr said, "We want Digital Identity to work in Australia, for all Australians."
"Digital ID will bring more convenience for Australians when they are going through a process of validating their identity online and doing so in a safe way that protects their data and privacy," Mr. Carr said.
Recently, NAB launched ConnectID, a digital identity platform developed in collaboration with Australian Payments Plus that enables users to verify their identity with third parties.
The ConnectID website states: "You can expect to see ConnectID rolling out gradually across institutions and businesses in Australia during 2023."
Federal Digital ID Push
The government consulted on the draft Digital Identity Bill 2023 between Sept. 29 and Oct. 10.
The legislation would nationally regulate a digital ID that would be available in the public and private sectors. This is expected to be introduced into Parliament within the next seven months.
A new Ministerial Digital ID Expert Panel was recently formed to provide "independent advice" on the implementation of a Federal digital ID.
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The chair of the panel, former New South Wales minister for digital government, Victor Dominello, said a draft digital ID bill will be introduced "end of this year or early next year."
Finance and Australian Public Service Minister Katy Gallagher also said there was "progress on digital ID," in late October.
The minister met with the panel, who are providing "independent advice on the expansion of Australia’s Digital ID System."
"This panel will play an important role in the government's commitment to legislate a Digital ID system that is secure, convenient, voluntary, and inclusive," Ms. Gallagher said.
What Else Did NAB say?
NAB said Australia "needs a well-functioning digital ID framework," but not all Australians were keen about a government digital ID.
"There is lingering scepticism of prior national identity proposals, and international studies have consistently shown that the majority of populations in Western democratic societies trust their bank more than they trust government, more than they trust BigTech firms," NAB said in a discussion paper.
The bank claimed a digital identity service is important to "reduce the risks" NAB and customers face from criminal activity in identity theft and impersonation.
NAB believes it can help reduce the volumes of personal identity data that can be copied and stolen.
Also, the bank sees digital identity as a "crucial enabler" to support higher productivity of the Australian economy.
"Recent estimates indicate that the economic value of digital ID to Australia could be approximately three to four percent of GDP, having regard to similar mature economies," it said.
In addition, digital ID services would help the bank "further strengthen" its customer relationship.
Noting that customers are more digitally engaged and have gotten used to using online platforms and services in their daily lives, NAB said they can provide "additional value" to customers by offering a "secure and simple digital means of proving their identification."
"Our customers trust us as custodians of their money and their data, and we want to continue to support and maintain that trust by stepping forward and providing much-needed identity services, rather than waiting for others to do so, such as social networks and global technology giants," NAB said.
NAB said "government and banks need each other" and industry-led digital ID solutions and interoperability between industry and government ID solutions would reduce risks of fragmentations.
"Where an individual can access a myriad of services across both the private and public sector, utilising their chosen ID verification service provider(s), this will create greater convenience, utility and ultimately increase the effectiveness of Digital ID," NAB said.
The bank said it is concerned that a focus on only government digital ID providers will see "diminished participation" and an Australian digital identity won't be able to reach its full potential.
"We're stepping forward to provide Australians choice, and to ensure our national ecosystem is stronger and safer," the bank said.