This paper explores the evolving role of artificial intelligence (AI) and blockchain technology
in enhancing digital identity solutions, with a specific focus on Albania’s readiness and
challenges in adopting digital wallets aligned with European Union standards. Digital
identity solutions, empowered by blockchain, provide secure, decentralized, and
tamper-resistant frameworks that improve identity verification and data privacy. AI further
strengthens these systems through advanced biometric authentication, fraud detection,
real-time decision-making, and personalized user experiences. The integration of AI and
blockchain technologies promises to address critical issues such as identity theft, secure
authentication, and data protection while supporting self-sovereign identity management.
The study reviews global digital wallet adoption trends, EU initiatives like the European
Digital Identity Wallet, and Albania’s digital governance landscape, highlighting
infrastructural, regulatory, and public trust challenges. It emphasizes the need for robust
legal frameworks, cybersecurity measures, and public awareness to ensure secure and
efficient digital identity management. Ultimately, this research highlights how AI and
blockchain can facilitate Albania’s digital transformation, fostering secure, user-centric
digital identity ecosystems critical for e-governance, finance, and cross-border services.
Keywords: Digital Identity, Blockchain, Artificial Intelligence, Digital Wallet, Albania, Data
Privacy, EU Digital Identity.