Author of the opinion: Eowyn Chen, CEO of Trust Wallet
The world is changing. Fundamental elements that are often taken for granted in the physical world are now becoming unified with the advent of the digital age. Identity, payments, and access are now converging into a single location: the digital wallet.
Wallets are becoming the foundational layer for entering the modern digital world, just as passports unlock physical mobility on a global scale.
Digital wallets now enable individuals to gain identity, funds, and services through the online economy, providing true digital freedom for anyone, anywhere.
Across the European Union, digital identity regulations are changing the way people prove their identity, interact with institutions, and engage with the physical world. Through digital identity wallet regulations, citizens will soon be able to store national ID cards, driver's licenses, and health credentials on their mobile devices.
In addition to government-issued identification, self-custody wallets are already supporting Web3 identities. For example, Web2-style domain names (like "alice.eth") can now be registered and used through decentralized application (DApp) browsers for Web3. This allows applications to recognize you without requiring you to share lengthy wallet addresses.
This is a clear signal of the direction things are heading—wallets are no longer just tools for holding digital assets. Wallets now enable users to conduct cross-border transactions securely while protecting their privacy. Things are changing.
New decentralized identity frameworks are helping to build the future of cryptocurrency wallets, transforming them into secure and verifiable identity containers.
Digital credentials can now be stored and managed directly in wallets controlled by users, rather than relying on centralized systems or third parties. These credentials may include government IDs, educational diplomas, and medical records.
Pilot projects are already being phased in globally, including the rollout of the EU's digital identity wallet in Germany, France, the Netherlands, and Poland. Citizens will soon be able to verify their identity using verifiable credentials stored on their mobile devices.
Technologies like zero-knowledge proofs are being used to verify user attributes, such as age or residence, without exposing their personal data. By creating user-owned identities and secure on-demand verification, wallets are becoming the center of digital identity.
This stands in stark contrast to traditional username-password logins and centralized database models, which are worlds apart. The decentralized approach allows users to verify themselves without exposing additional data to malicious actors.
Mobile cryptocurrency wallets have provided users with borderless financial payment tools, supporting cryptocurrencies, stablecoins, and tokenized assets. With a record 36 million active cryptocurrency mobile wallet users expected by Q4 2024, it is clear that interest in self-custody payments and digital asset management is significantly growing.
One specific improvement is gas abstraction, allowing users to pay network fees with tokens they already hold. This reduces the need to handle separate "gas tokens," making payments feel closer to Web2.
Peer-to-peer transactions, participation in non-fungible token (NFT) markets, and on-chain commerce—these use cases are expanding with the growing interest. Unlike traditional financial systems, cryptocurrency wallets do not bear the burden of excessive fees, forced delays, or the need for banking infrastructure to intervene in economic activities.
Current payment methods remain stuck in the past. They struggle with coverage, speed, and inclusivity. Digital wallets, on the other hand, provide viable solutions for users needing the right tools to join the self-sovereign identity digital age.
Beyond identity and payments, wallets also serve as a verification layer for digital experiences. They are used to prove asset ownership, gain access to token-gated communities, and unlock personalized experiences in gaming, events, and commerce.
From exclusive NFT drops to loyalty reward systems and play-to-earn gaming economies, a single wallet can act as a passport for access across multiple platforms. These use cases are no longer theoretical, as they now exist across various platforms, blockchains, and protocols.
Interoperability is what enables this shift. A single self-custody wallet can authenticate across hundreds of DApps with a portable identity. With biometric unlock on mobile devices and browser extensions, confirmation now feels familiar—your keys never leave your device.
A well-designed wallet can connect to hundreds of DApps. People can participate in multiple ecosystems using a single identity and asset base. Cryptocurrency wallets provide a unified portable solution for digital participation.
As more services and experiences migrate on-chain, wallet authentication will replace traditional login models. This applies not only to cryptocurrency-native platforms; it applies to any digital ecosystem that prioritizes transparency, minimizes trust, and maintains sovereignty.
Just as physical passports prove citizenship and enable global mobility, digital wallets are becoming the preferred credential for online identity and mobility. Trust, security, and usability are the key design principles that tie it all together and will attract the next billion users.
As decentralized systems continue to evolve, wallets are evolving too. They are no longer just a tool. They are the foundation of digital freedom.
The future will not require usernames—it will require signatures.
Author of the opinion: Eowyn Chen, CEO of Trust Wallet.
Related: National charter bank SoFi launches cryptocurrency trading for U.S. customers
This article is for general informational purposes only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Original article: Opinion: Your cryptocurrency wallet is your digital passport
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