BUILDING STATELESSNESS-SENSITIVE ID SYSTEMS 16 BACKGROUND A growing global consensus highlights the importance of DPI as a foundation for large-scale digital transformation. At the core of this infrastructure, digital identity is widely regarded as the lynchpin, providing reliable authentication and enabling trusted interactions between individuals, governments, and businesses. Box 1. Global Findex Data 2021 – Findings on Digital ID • Over 90% of countries now have foundational ID systems underpinned by digital data: As of mid-2022, 186 out of 198 countries have foundational ID systems where identity records are stored in a digital format. Many countries that were primarily reliant on paper-based identity records are in the process of introducing digitized ID systems. The number of people relying on non-digitized systems and records for identity management is expected to decline rapidly in the coming years. • Two-thirds of countries globally have foundational ID systems that support some form of digital identity verification and/or authentication for in-person services and transactions: Foundational ID systems in at least 132 countries support some form of digital identity verification or authentication in the context of in-person services and transactions. However, the functionality, availability, and use of digital verification or authentication services—along with the levels of assurance and data privacy and protection safeguards they provide—vary substantially across countries. • In close to 40% of countries, people can obtain at least one governmentrecognized digital identity credential—i.e., one that allows for remote authentication to access online services and transactions. Source: Global Findex Data 2021 As a key enabler, digital ID underpins the delivery of digital public and private services—ranging from healthcare management and social welfare payments to banking transactions and tax administration. For users, it brings greater convenience, shorter waiting times, and reduced travel costs by enabling remote authentication. For governments, it strengthens administrative efficiency and helps mitigate risks such as identity fraud.