ccording to the document, Israel should continue basing digital identity on existing government infrastructure, primarily the Population Registry managed by the Population and Immigration Authority and the national identification system operated by the National Digital Directorate. The document explains that licensing the platform to private entities was rejected primarily due to the small size of the domestic market, the difficulty of achieving profitability within a reasonable timeframe, and the associated regulatory oversight costs. The draft states that reliance on the system will not replace full Know Your Customer (KYC) procedures, but will primarily reinforce onboarding and sensitive identity verification points. A central tool proposed in the draft is a national digital identity wallet, where residents can store and present official credentials, including their identity cards. Sharing data from the wallet will follow the principle of selective disclosure, allowing users to prove compliance with a requirement without revealing all details on the credential.