Analysis of Social Acceptance for the Use of Digital Identities

Abstract

According to a study by the German Federal Printing Office (2022), every European lives with 90 digital identities on average, and the trend is rising. The German government has launched the innovation competition “Digital Identities Showcase” to select and promote identity projects for data security and sovereignty. The funding amount is 50 million EUR to develop software, research practical use cases and implement them by 2024. Of course, this large sum presupposes acceptance for the use of such digital identities, especially against the backdrop of critical opinions from the media and society, as already outlined in a Canadian study. However, there is little academic research on blockchain technology, but almost no article on the use of digital identities based on blockchain technology. This paper conducts a quantitative study on the social acceptance of digital identities using a questionnaire-based survey with 324 German participants on the social acceptance of the use of digital identities. The result of the study is that social acceptance of the use of digital identities is significantly influenced by demographics, citizens’ experience with blockchain products, affinity with financial products and privacy concerns.