The European Union presents its digital identity wallet as a voluntary, decentralized, and user-controlled system. By contrast, the United Kingdom’s proposed BritCard envisages a mandatory digital identity linked to immigration enforcement and labor market controls. The BritCard case illustrates how digital identity initiatives, initially justified in terms of efficiency and administrative simplification, can evolve into instruments of pervasive monitoring. As the current EU model expands, incorporates new obligations, and becomes increasingly interconnected with public and private services, it could eventually mutate into a similar form of comprehensive control and surveillance. The decisive factor determining its long-term trajectory will be whether it retains the principles of voluntariness, privacy protection, and citizen control over data.

Key takeaways:

• Fewer Cash Payments: Cashless transactions continue to rise, and in the Czech Republic most financial operations already take place digitally. Still, only 3% of citizens do not use cash at all.
• A Guarantee of Freedom and Independence: Cash is not only a means of payment but also a symbol of personal freedom and anonymity. Its constitutional protection is now being promoted by the emerging Babiš government, but approval from the Senate will be necessary — and the Senate has not supported the amendment.
• A Balance Between Both Payment Methods: The goal should not be the dominance of one form of payment over the other, but balance and the right to choose. Constitutional protection of cash does not mean rejecting digitalization; on the contrary, Czech law should be expanded to include an obligation to accept contactless payments as well.

Policy Paper – Jan Rovenský

The analysis is in PDF under the link below.