The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.
Issue link: https://digital.carswellmedia.com/i/1470136
18 www.lexpert.ca Accelerated Digitalization DIGITAL IDENTITY CRITICAL TO REAPING FULL BENEFIT OF DIGITAL ECONOMY WITH AN undisputed acceleration of digi- talization occurring in every industry and across both public and private sectors, the key to reaping the full benefit of the digital economy is the development of the critical but oen misunderstood matter of digital identity, says Parna Sabet-Stephenson, partner at Gowling WLG. "Trust between transacting individuals and organizations is conveyed through digital identity," says Sabet-Stephenson. "It unlocks access to things like banking, education, health and government services, and will likely increase the rate of digital adoption by creating efficiencies and ease of use." Sabet-Stephenson serves as Canadian delegate to one of the working groups of the United Nations Commission on International Trade Law (UNCITRAL), of which Canada is a member. e group focuses on e-commerce issues and is considering a model law on digital identity. At a national level, great work is being done by the Digital ID and Authentication Council of Canada (DIACC), including its Pan-Canadian Trust Framework (PCTF), a framework that, if used, could provide for consistent protection of personal information and privacy across Canadian jurisdictions. e CIO Strategy Council has also published a national volun- tary standard for Digital Trust and Identity; however, Sabet-Stephenson says Canada must "build on these and complement them with an integrated national approach that takes into account the legal issues as well." Rights, responsibilities, and liability of the various players in the digital identity ecosystem are currently contractual matters in Canada. Existing laws, whether legislation-based or common law, would apply as well, but they were not designed with digital identity in mind. As Canadian jurisdictions move ahead with the adoption of digital identity, they will have to consider whether any modifications will be required to their existing laws. e modifi- cations required, including privacy and security-related considerations that must be addressed, should be consid- ered holistically. "e division of power in Canada and the coordination required at multiple levels of government with many relevant regulators add complexity to the Canadian landscape," says Sabet- Stephenson. "But this is an important issue that we need to tackle, and the same chal- lenges would be applicable for other legal issues in the digital space." Developing legislation will facilitate interoperability and coordination across juris- dictions, including between public and private sectors as well as internationally. At a national level, ideally Canadians should be able to access every level of government services using a single sign-on, which is not currently the case. For example, British Columbia and Alberta, Parna Sabet-Stephenson Partner at Gowling WLG which have their own digital ID systems, have agreements in place with the federal govern- ment by which residents can access federal services with their provincial digital IDs, but it remains to be seen how that will work with Ontario and Quebec, which have announced their intention to roll out provincial digital identity in 2022 and 2023. As a technology lawyer with a primary focus on the financial services industry, Sabet- Stephenson sees many parallels between the desired approach to the implementation of open banking in Canada and that of digital identity. However, Canada is investing a lot of time and effort in open banking without considering the fact that in order to leverage its potential fully, the issue of digital identity has to be resolved. "We need to adopt a similar approach to digital identity, including appointing an individual to oversee its implementation in Canada, bringing the various private- and public-sector stakeholders to the table and leveraging cooperation between the public and private sector through regulatory framework and industry expertise," Sabet- Stephenson says. "I am hopeful that as we move ahead with the implementation of open banking, digital identity will garner the atten- tion that it deserves – otherwise, our ability for growth and innovation will be limited." CANADA FACES LIMITATIONS IN GROWTH, INNOVATION AS LONG AS NO HOLISTIC STRATEGY EXISTS ABOUT THE FIRM Gowling WLG is an international law firm built on the belief that the best way to serve you is to be in tune with your world, aligned with your opportunity, and ambitious for your success. With more than 1,500 legal professionals around the world, we provide our clients with in-depth knowledge in key global sectors and a suite of legal services at home and abroad. We see the world through our clients' eyes, and collaborate across countries, offices, service areas, and sectors to help them succeed, no matter how challenging the circumstances. "[DIGITAL IDENTITY] IS AN IMPORTANT ISSUE THAT WE NEED TO TACKLE" Parna Sabet-Stephenson