Maldives advances digital ID bill as Luxembourg stalls

The South Asian country of the Maldives is moving closer to establishing a national digital identity system following parliament’s first hearing of a proposed bill. On the other side of the globe, Luxembourg has been added to the list of countries that have yet to establish a digital ID blueprint.

Earlier this June, the Maldivian parliament heard the first reading of the Digital Identity Bill, a government initiative that seeks to provide Maldivians with a national ID system that would allow them to have seamless access to government services.

The tabled legislation’s first hearing coincided with the approval of the Cyber Security Bill in a separate vote, marking a significant step toward the Maldives’ digital transformation while cementing the government’s tenacity to ensure robust guardrails are in place amidst the rapid evolution of technology globally.

Under the Digital Identity Bill, the government will set up a Digital Identity Technical Advisory Committee within the first 90 days of the regulation’s enactment. This technical standards committee will provide guidance to relevant authorities on the specific criteria and protocols for the new system, including crafting guidelines with regard to data handling, user authentication, privacy protections, and how entities interact within the system to ensure reliability and security.

While the Maldives’ digital transformation is gathering steam, officials remain on high alert about the dangers of transitioning to the digital ecosystem, which they aim to address with the Cyber Security Bill.

Under this framework, the government will form a National Cyber Security Agency that would set uniform standards for cybersecurity that public and private institutions must follow, including mandating companies offering cybersecurity services to obtain licenses to operate, which is intended to ensure that they meet specific qualifications and standards needed to enhance the country’s overall security landscape.

If enacted, organizations or individuals that fail to comply with the legislation would face penalties ranging from $3,200 to $32,400.

Luxembourg’s hollow digital infrastructure

In Luxembourg, the Organisation for Economic Co-operation and Development (OECD) expressed concern about the country’s lack of a clear digital ID strategy, noting that such a framework is essential for its digital government infrastructure.

Luxembourg now joins Bulgaria, Canada, Peru, Romania, and Türkiye as countries that have yet to establish a national digital ID strategy or its equivalent, the local daily Luxembourg Times reported.

While the landlocked European state is well known to be one of the world’s wealthiest countries in terms of gross domestic product (GDP), it is highly technological as well, having established a solid digital foundation, including a single digital gateway and digital ID access that covers more than half of its public services.

The OECD noted in its Digital Government Outlook 2026 report that having a strong digital foundation is not enough to support the government’s digital transformation efforts, making it more challenging for Luxembourg to become a fully functioning digital state.

Apart from the absence of a comprehensive digital ID blueprint, the OECD also pointed out the lack of a government-wide digital skills development strategy, despite providing a series of training sessions on the practical and ethical use of artificial intelligence (AI), data privacy, and secure deployment in service design and policymaking for authorities.

Additionally, the OECD noted the need to establish an omnichannel strategy to avoid difficulties or inconsistencies in accessing services nationwide, making communication and support more effective.

Watch: What can organizations do to get on the Web3 & digital identity bus?