Submitted by: Joni Brennan, President
List of recommendations:
- Recommendation 1: That the government fund and deploy an interoperable, reusable digital credentials login solution for federal services modeled after widely-used single sign-on tools in the private sector.
- Recommendation 2: That the government invest in Canadian-based trust infrastructure, including domestic cloud and data centres, to support AI-readiness, digital sovereignty, and economic resilience.
- Recommendation 3: That the government advance interoperability to unleash digital trade and labour mobility.
Introduction
Thank you for the opportunity to provide input in advance of Budget 2025. In a time of economic, technological, and geopolitical uncertainty, Canada must act with urgency to reinforce the foundation of a strong, secure, and competitive digital economy: trust.
Whether enabling interprovincial labour mobility, reducing fraud in real estate and finance, or ensuring AI tools are used responsibly, verifiable trust infrastructure is central to our countryʼs economic stability and resilience. Trust is not just a principle, it is the experience citizens have when interacting with government services that are as seamless, secure, and intuitive as private-sector platforms. Without secure and scalable identity verification, Canadian businesses face rising fraud costs, compliance burdens, and lost consumer confidence. Citizens and professionals are delayed in accessing critical services or moving where they are needed most. And governments are challenged to keep pace with accelerating threats in an AI-driven world.
Now is the time to deliver trust through experience by investing in practical tools and Canadian infrastructure that protect citizens, unlock innovation, and future-proof our economy.
About DIACC
The Digital Identification and Authentication Council of Canada (DIACC) is a non-profit public–private coalition created following the federal Task Force for the Payments System Review. DIACCʼs mission is to accelerate digital trust adoption by enabling privacy-respecting, secure, and interoperable identity systems.
DIACC is the steward of the Pan-Canadian Trust Framework (PCTF) — an industry-developed, standards-based, technology-neutral framework designed to enable scalable, certifiable digital trust infrastructure that meets the needs of governments, businesses, and individuals.
The PCTF has been developed in collaboration with experts from federal, provincial, and territorial governments as well as industry and civil society. It supports verifiable credentials, authentication services, fraud prevention, and information integrity across the Canadian digital economy.
Canadaʼs Urgent Trust Deficit
Canada faces a growing trust deficit that threatens economic growth, competitiveness, and national resilience. Three converging challenges demand action:
- AI-accelerated misinformation and identity theft – Generative AI tools are enabling the rapid creation and dissemination of fake identities, fraudulent documentation, and disinformation. Without robust authentication systems and verifiable credentials, the authenticity of people, data, and services becomes harder to determine—eroding consumer confidence and legal certainty.
- Rising fraud and its impact on the economy – Many of Canadaʼs key sectors are increasingly subject to fraud. The real estate sector, for example, is increasingly experiencing impersonation and illicit financial flows, especially in transactions involving unrepresented parties. Mortgage fraud, title theft, and manipulated documentation are rising, yet identity verification practices remain outdated and fragmented.
- Barriers to labour mobility and seamless trade – Many professionals face long delays and duplicative processes when seeking to work across provinces or internationally. Businesses struggle to comply with evolving regulatory requirements and to compete globally without recognized, verifiable credentials.
Recommendations
DIACC offers three core recommendations to address these threats and seize the opportunity to lead globally in trusted digital innovation.
Recommendation 1: That the government fund and deploy an interoperable, reusable digital credentials login solution for federal services modeled after widely-used single sign-on tools in the private sector.
The Government of Canada should develop and implement a digital credentials login solution that enables citizens to access federal services with one secure, consistent experience — similar to how they use Google or Apple sign-in options across the internet. For example, with a trusted credential, Canadians could log into a real estate registry, file taxes, or access health records using one verified identity, reducing friction and fraud risk while improving convenience and access.
These credentials should be certified against open standards such as the PCTF, enabling individuals to verify their identity once and reuse it securely across services. The government is also encouraged to take a longer-term view by building compatibility across federal, provincial, and municipal digital credentials systems.
Recommendation 2: That the government invest in Canadian-based trust infrastructure, including domestic cloud and data centres, to support AI-readiness, digital sovereignty, and economic resilience.
Verification and authentication tools are essential infrastructure in an AI-driven economy. As AI-generated content, synthetic identities, and manipulated documents become increasingly sophisticated, the ability to verify the provenance and traceability of information and data becomes even more vital.
DIACC recommends that the government:
- Recognize authentication and verification tools as critical components of Canadaʼs AI strategy and cybersecurity agenda.
- Fund the adoption and certification of privacy-respecting, standards-based solutions, such as the PCTF.
- Prioritize collaborative development of tools that verify identity, documentation, and information authenticity while preserving user privacy.
- Ensure data residency through investment in Canadian-based private cloud and hardware services.
A proactive, standards-aligned approach will support:
- Responsible AI deployment across sectors.
- Secure digital service delivery.
- Reduced liability for businesses and professionals relying on verified information.
- Greater resilience against misinformation and fraud in elections, commerce, and public discourse.
Recommendation 3: That the government advance interoperability to unleash digital trade and labour mobility.
Interoperability is key to reducing friction, unlocking economic opportunity, and ensuring Canada remains globally competitive. DIACC recommends that the government:
- Support cross-government and cross-border interoperability by recognizing frameworks such as the PCTF in legislation, procurement, and policy.
- Advance mutual recognition of trust frameworks with international partners (e.g., between PCTF and the EUʼs eIDAS 2.0 framework).
- Enable the use of verified credentials for regulatory compliance, licensure, and interprovincial labour mobility.
- Accelerate digital transformation across public services using certifiable trust services.
This approach will help:
- Enable professionals and skilled workers to move between provinces without redoing verification processes.
- Simplify cross-border regulatory compliance for Canadian exporters and importers.
- Allow micro, small and medium enterprises — including in rural, Indigenous and remote communities — to offer services and products across Canada and beyond without prohibitive onboarding costs.
- Ensure that public sector modernization efforts are secure, accessible, and efficient.
The Road Ahead
Canada is at a turning point. The foundation of trust that underpins our digital and economic systems is under strain, but the tools and standards to reinforce it already exist. Frameworks like the PCTF offer governments and businesses practical, scalable solutions that:
- Meet privacy, security, and accessibility requirements.
- Support inclusive digital access for underserved communities.
- Complement formal standards and enable rapid deployment.
- Preserve Canadaʼs digital sovereignty. Budget 2025 offers a strategic moment to invest in these tools, not just as a technical fix but as a long-term economic, national security, and democratic priority.
Conclusion
Trust is Canadaʼs most valuable economic asset in the digital age. Whether enabling a small business to sell across borders, a citizen to access services securely, or a hospital to verify a clinicianʼs credentials during a crisis, trust infrastructure is the connective tissue of our digital society. DIACC welcomes further collaboration with federal partners to ensure Canadians can interact, transact, and innovate with confidence in a digital-first world. Thank you once again for the opportunity to provide our input in advance of Budget 2025 and as we collectively move forward on the path to a digitally and economically prosperous Canada.
