Biden administration expected to foster digital identities

According to a US consultancy, the Biden administration is expected to boost financial innovations and stronger personal ownership of digital identities.

The development of Fintechs, including AI-enabled services, could be facilitated by the fact that it is not such a partisan (Republican vs Democrat) field. The deployment of artificial intelligence in credit decisions will be discussed.

The creation of a secure digital identity, which could modernise public services, such as healthcare and government assistance, is a top priority according to Bill Foster, a Democrat Representative. This project is also supported by both political parties. Bill Foster already presented a bill on digital identity this year. A data privacy and ownership framework for the financial sector could be agreed in the next term.

The new administration would also clarify the rules on how financial institutions should handle digital assets. The Biden administration would close regulatory loopholes exploited by certain fintech firms.