Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Federal departments to test digital credentials that could replace paper identity documents

Two federal government departments have launched a project to test digital, blockchain-based credentials that could replace the paper documents Canadians currently use to prove their identity.

Exclusive

Federal departments to test digital credentials that could replace paper identity documents

By Murad Hemmadi
Photo: Illustration by Hanna Lee
Dec 6, 2019
A A
A Small A Medium A Large
Share

Gift

Share

Two federal government departments have launched a project to test digital, blockchain-based credentials that could replace the paper documents Canadians currently use to prove their identity.

The documents necessary to verify someone’s credentials in situations like job applications or airport security checks are paper-based and “susceptible to loss, destruction, forgery, and counterfeiting,” states a challenge issued by Shared Services Canada and the Treasury Board.

Talking Point

Shared Services Canada and the Treasury Board Secretariat have issued a challenge for a new digital credentialing system that would let governments and private companies easily and securely verify users’ identities. The early-stage project is designed to replace insecure paper documents and give individuals control over their records.

The departments want bidders to come up with a solution that lets private businesses and governments verify information about a person’s identity or their credentials for free using a web browser or mobile phone, and without needing to rely on a centralized digital registry of people. Those getting their credentials checked would own their records and be able to transfer them between identification systems. While the challenge requires that all personal information must be stored in Canada, bidders are also required to incorporate a set of “emerging and/or mature specifications for interoperability that have been funded, tested and/or championed by the United States of America Department of Homeland Security.”

The system could be tested in a situation like aviation security, where there may be many agencies involved and different customs and immigration authorities on each side of a journey, the notice says.

While many companies and governments keep electronic records of names, dates of birth, professional qualifications and security clearance, there aren’t widely accepted or standardized ways to assign and check credentials digitally, according to the challenge notice. To encourage adoption, it suggests using blockchain or other types of distributed ledger technology—systems in which data is recorded and shared across many computers instead of being held in a centralized database.

The Treasury Board said it plans to work with the winner to figure out how the system could be used and standardized. “We want to deepen our understanding of the technologies and to see if a digital ecosystem approach along with common capabilities can be applied to many different contexts, including education, travel [and] professional qualifications,” spokesperson Bianca Healy told The Logic.

The departments will discuss how they could implement the technology once the challenge is concluded. “The degree to which the [government] will develop, leverage or contribute to a ubiquitous [identity verification] infrastructure remains to be explored,” said Healy. Shared Services Canada did not reply to The Logic’s questions by deadline.

Business groups and former high-ranking government officials have advocated for a country-wide digital verification system. The process of identifying citizens seeking services costs governments $482 million in lost time annually, according to a May 2018 report from the Digital ID & Authentication Council of Canada, whose members include major financial institutions as well as federal departments and provincial governments. In October, former federal chief information officer Alex Benay called for the country to develop a “trusted digital identity” system.

Among the eight firms that formally expressed interest in the project is SecureKey, a Toronto-based technology company whose Concierge login technology is already in use on the websites of the Canada Revenue Agency and Service Canada, which issues passports and social insurance numbers and runs many federal benefits programs. It declined to comment, since the procurement is ongoing, but in an unrelated January interview, CEO Greg Wolfond told The Logic, “This problem of proving who you are is pretty huge.”

He said it can be difficult for institutions to ensure that the person presenting a driver’s licence or health card at a service counter is the same as the one whose name is in their database, or whether a client has been the victim of identity theft. Sectors like banking and telecommunications and governments need to cooperate to solve the problem of ensuring that people can share their data securely, log in to services they need, and prove their identity and credentials, he said.

Gift the full article

While the two departments manage most of Ottawa’s technology infrastructure, the government as a whole hasn’t made a decision on a single digital credentials system, and other departments are testing out different identity innovations. In 2018, the CRA ran a five-month test of SecureKey’s Verified.Me login system, which allows users to share the personal information held by their banks to prove who they are to other companies and the government.

Ottawa has explored partially replacing paper documents with electronic records. In 2018, an immigration department-commissioned study found mixed reactions to the idea of a virtual passport system, in which travellers would check in at airports using their existing booklets, then move through the rest of the building via facial recognition.

The challenge is being run through Innovative Solutions Canada (ISC), launched in December 2017 to help small Canadian businesses win government contracts. The companies chosen to work on the digital credentials project will get up to $150,000 each to cover six months of work on a proof-of-concept, with another $1 million and a year for a working prototype. Applications closed in early November. The Treasury Board said the two departments aim to finish reviewing bids in early 2020.

#blockchain #cybersecurity #federal government #Innovative Solutions Canada #procurement

Sponsored Content

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Illustration by Hanna Lee

Most Popular This Week

News

ApplyBoard was the worst-performing Canadian startup in Fidelity’s portfolio in 2026

By Claire Brownell
An image of Finance Minister François-Philippe Champagne wearing a dark suit and tie, gesturing while he speaks into a microphone. There are three Canadian flags in the background.
News

Investors and CEOs are urging Ottawa to expand tax breaks for entrepreneurs

By Catherine McIntyre
News

Cohere opens up its AI platform to give businesses more control

By Murad Hemmadi
An image of Mark Carney standing in front of a red podium with the words "AI for All / L'IA pour tous." He is wearing a suit and tie. In the background, people wearing scrubs and white coats are visible.
News

Carney picks big-name researchers and investors for new AI advisory council

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: Canadian ignorance about India is a strategic weakness

By Kevin Carmichael

Briefing

Aritzia shares pop after earnings rise 204%

By Anita Balakrishnan   |   Oct 9, 2026

First Nation in Alberta goes to court over fast-tracked oil pipeline

By Chaimae Chouiekh   |   Oct 9, 2026

Chinese EV maker Geely Auto Group to launch in Canadian market in 2027

By Joanna Smith   |   Oct 9, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Carney picks big-name researchers and investors for new AI advisory council

By Murad Hemmadi   |   Oct 2, 2026
An image of Mark Carney standing in front of a red podium with the words "AI for All / L'IA pour tous." He is wearing a suit and tie. In the background, people wearing scrubs and white coats are visible.
The Big Read

Cameco’s high-stakes bid to be Canada’s next nuclear champion

By Joanna Smith   |   Sep 23, 2026
A shot looking down the length of a tunnel with conduits along its sides and railroad-style tracks on its floor. There are two workers in the distance wearing hardhats and headlights and walking toward the camera.
News

ApplyBoard was the worst-performing Canadian startup in Fidelity’s portfolio in 2026

By Claire Brownell   |   Oct 6, 2026
News

TD cracks global top 10 for AI again as banks race for returns on investments

By Chaimae Chouiekh   |   Oct 6, 2026
News

Cenovus announces $5.7B takeover of Athabasca, with a nod to Carney’s Mega Deduction

By Meghan Potkins   |   Oct 5, 2026
A view of oil extraction equipment consisting of pipes, catwalks and cylindrical tanks; there are three company representatives in the foreground wearing white hard hats and blue coveralls with yellow reflective striping.
News

Investors and CEOs are urging Ottawa to expand tax breaks for entrepreneurs

By Catherine McIntyre   |   Oct 6, 2026
An image of Finance Minister François-Philippe Champagne wearing a dark suit and tie, gesturing while he speaks into a microphone. There are three Canadian flags in the background.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account