The European Parliament and the Council of the European Union reached a final agreement this week on the establishment of “European Digital Identity Wallets,” the first central and fully digital identification system for all Europeans.

“Under the new law, the EU will offer its citizens so-called ‘digital wallets’—on a voluntary basis, at first—which will contain digital versions of their ID cards, driving licenses, diplomas, medical records, and bank account information,” the European Conservative reported.

These documents will be recognized as means to access online services throughout Europe, and citizens will be able to prove their identity or share electronic documents from their wallets “with a click of a button,” the legislators hope.

“This marks an important step towards the Digital Decade 2030 targets on the digitalization of public services,” the EU Commission said in a statement Wednesday. “All EU citizens will be offered the possibility to have an EU Digital Identity Wallet to access public and private online services in full security and protection of personal data all over Europe.”

The agreement reached by the co-legislators is now subject to formal approval by the European Parliament and the Council. Once formally adopted, the European Digital Identity framework will enter into force on the 20th day following its publication in the Official Journal.

The agreement came just a few weeks after Christine Lagarde, the head of the European Central Bank, announced that the European Union was moving forward with the development of its new central bank digital currency (CBDC)—the digital Euro.

Conservative EU lawmakers and cybersecurity experts have opposed these developments, warning that large-scale abuse is inevitable in an all-encompassing digital identity system.

Dutch MEP Rob Roos sounded the alarm on X, Wednesday:

“BREAKING: Very bad news. The European Parliament and Member States just reached an agreement on introducing the Digital Identity,” he said.

Roos noted that following the agreement, EU Commissioner Thierry Breton said: “‘Now that we have a Digital Identity Wallet, we have to put something in it…’, suggesting a connection between CBDC and eID.”

Ahead of the the European Parliament’s decision, over 500 privacy and cybersecurity experts from 39 countries signed a joint letter warning that the legislation “fails to properly respect the right to privacy of citizens and secure online communications.”

Roos lamented that most EU lawmakers “ignored all the privacy experts and security specialists. They’re pushing it all through.”

The Dutch conservative said that he is not optimistic, but “it is not too late yet.”

“Parliament still has to vote about this. Let your MEP know that you oppose the Digital Identity and that you want your MEP to vote against it!” he said.