9 Reasons Why Every Country Needs Data Wallets
We mark the start of the Singapore Fintech Festival by considering why every country needs data wallets
In today’s digital age, a data wallet is a powerful tool for both individuals and nations. Here are 9 reasons why every country should embrace this transformative technology:
Unlocking Market Power with a New Asset Class
When citizens (or Micro/SMEs) own their data – often referred to as “self-sovereign data”– they gain ownership of a valuable asset in the digital economy. Due to the unique “non-rivalrous” property of data where it can be owned by both the businesses that collect it and data subjects themselves, we can create market power for individuals through the use and reuse of their data, while still enabling businesses to leverage on the same data. This amplified distribution of data creates a multiplier effect that strengthens the economy.
Promoting Financial and Social Inclusion
Credentials stored in data wallets, like Malaysia’s "B40" designation for low-income citizens, enable businesses to offer targeted discounts without leakage of benefits to those not part of the target group. This approach promotes financial and social inclusion by integrating the private sector into subsidy programs, reducing the burden on government spending.
Reducing Income Inequality
By combining the empowerment of self-sovereign data with socially inclusive credentials, data wallets can help redistribute resources more effectively. This has the potential to reduce income inequality, alleviate poverty, and promote social mobility, ultimately contributing to a fairer economy.
Securing Conditional Payments
Data wallets streamline payments by securely sharing verified credentials alongside transactions. For instance, age verification for alcohol purchases or prescription validation at pharmacies can be done instantly and securely without the need for physical IDs. This reduces bottlenecks in payment systems while ensuring higher security.
Strengthening National Sovereignty
Governments investing in national data centers can host data wallet servers, ensuring that both sovereign and self-sovereign data remain within the country’s borders. This dual sovereignty approach bolsters national security and enhances cybersecurity efforts.
Enhancing Skills and Workforce Productivity
Data wallets can store and share skill credentials, such as degrees and certifications, while protecting individual privacy. These aggregated insights offer a clearer picture of national workforce capabilities, revealing skill gaps, and informing policy decisions for workforce development.
Improving Holistic Public Health
Health data stored in wallets can be securely shared across hospitals, giving healthcare providers a more complete view of a patient’s history. This enables more accurate diagnoses and treatments, contributing to better public health outcomes.
Amplifying Apps and Services
Data wallets can be integrated into any app to boost its capabilities in data privacy, usage, insights, and portability, allowing the country’s existing apps to become more trustworthy, secure, and effective.
Cross-Border Portability
For a country’s diaspora, data wallets can be a lifeline. By securely storing important credentials like identity documents and credit scores, data wallets offer safety and support for citizens living abroad, ensuring they have access to the vital information they need across borders.
Data wallets are more than just a tech innovation – they are a solution for empowering citizens, promoting inclusivity, and enhancing national sovereignty. Countries that use this technology can unlock new economic opportunities and strengthen the wellbeing of their citizens in the digital age.
Check out the CheckD Data Wallet at https://checkd.io