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The EU and Canada Collaborate on Digital IDs
By Martin Armstrong | December 12, 2025
The latest agreement between the European Union and Canada to collaborate on mutually recognized digital IDs is simply another step in what I have been warning about for years. Whenever government confidence collapses, the political class tightens control. Digital ID is not about convenience; it is about tracking capital and controlling movement as the global sovereign-debt crisis accelerates.
The EU and Canada Collaborate on Digital IDs
By Martin Armstrong | December 12, 2025
The latest agreement between the European Union and Canada to collaborate on mutually recognized digital IDs is simply another step in what I have been warning about for years. Whenever government confidence collapses, the political class tightens control. Digital ID is not about convenience; it is about tracking capital and controlling movement as the global sovereign-debt crisis accelerates.
The danger here is obvious. Mutual recognition means a unified framework. They're building a foundation to establish a GLOBAL digital ID. Once these systems talk to one another, you have created the architecture for a worldwide database controlled by the political elite. This is precisely what the EU has been pushing with its Digital Services Act and the infamous "digital wallet" proposal. Now they are exporting it, just as they exported their disastrous ideas on Net Zero and financial regulation. Canada, collapsing economically and politically, is following Brussels into the abyss. [Editor's note: "They?" Who exactly is "they?"]
The EU and Canada will jointly test a pilot for digital identity wallets. Why do two separate continents need their systems to integrate? You cannot have a cross-border digital ID without a central authority. And once the state has the ability to monitor every transaction, every movement, every piece of identification, they will inevitably link this to taxation, travel permissions, banking access, and even political compliance. This is how governments always respond in the final stage of their fiscal life cycle. Rome imposed travel permits. The Soviet Union created the internal passport. Now the West is doing the same with better technology.
Please go to Armstrong Economics to continue reading.
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Digital IDs and AI dreams:
In the final analysis these digital systems are aggressively being built out and there isn't much that can slow them down or prevent them from coming online. Central banks engage with digital IDs mainly for payment and compliance purposes, but governments and tech firms are the primary drivers of digital ID systems.
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