The federal government quietly hired consultants to centralize document requests into one digital ID system. The Department of Social Development stated the proposal’s complexity required external expertise, according to Blacklock’s.

The May 20 note Digital Credentials Issue states, “Building this kind of system is complex and requires certain specialized tools and expertise we don’t have in-house. Based on international best practices we are asking industry to help.”

No budget or parliamentary oversight has been disclosed for the digital ID contract, which will enable departments to issue digital versions of physical credentials.

Feds @ESDC_gc hire consultants at undisclosed cost to build digital ID system for general public, a scheme so mammoth & complex it requires "expertise we don't have in-house."  https://t.co/InpDXRxF4a #cdnpoli pic.twitter.com/jb2JxOjmzN

— Blacklock's Reporter (@mindingottawa) July 21, 2025

When asked to justify digital ID procurements, the note reads, “Digital credentials … offer a quicker, safer, more secure and more cost effective way to access government services.”

Canadians currently use over 60 different systems for federal documents, it said. The Government of Canada plans to consolidate these into a single sign-in portal.

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The Department of Social Development clarified digital ID use was optional but declined to provide an estimated public uptake.

“The use of an online service channel will remain voluntary,” said A Single Sign-In Portal For Government Services, a companion note. “More importantly it will be built with strong features for privacy and security because Canadians deserve both convenience and confidence when dealing with their government.”

Last October 28, a Cabinet notice declared digital ID would be optional, yet skepticism remains. A 2023 Privy Council report found public resistance to digital ID for federal services, noting "widespread adoption … may be difficult … among cohorts … distrustful of public institutions."

Plans for digital credentials fell through as it came without parliamentary approval, according to Blacklock’s. MPs raised concerns over costs and security.

The Trudeau government spent $6.4 million on failed digital ID programs for pensioners, EI claimants, and tax filers, aiming for "fast and efficient delivery of government services." 

Among the proposed projects was a digital ID pilot with the World Economic Forum (WEF) that never took flight.

Liberal border bill threatens to usher in a cashless economy, digital ID

Liberal border security Bill C-2 threatens to outlaw cash payments of $10,000 or more, which freedom advocates warn serves as a precursor for digital currencies.https://t.co/gXf6AC3dyb

— Rebel News (@RebelNewsOnline) June 5, 2025

Meanwhile, Canadians are skeptical of other forms of digital ID, including digital currency, citing the risks of abuse and financial implications. 

People’s Party leader Maxime Bernier previously told Rebel News that a digital currency could create “serious privacy concerns,” adding, “Can we trust the government after [Finance Minister Chrystia] Freeland froze bank accounts during the Freedom Convoy? No.”

Despite this hesitation, the Bank of Canada filed Trademarks Act applications in December 2023 to claim ownership of a digital Canadian dollar.

The central bank reassured Canadians that “cash isn’t going anywhere” and that any decision to implement a digital dollar “belongs to Canadians through their representatives in Parliament.”

A 2020 Cash Alternative Survey said the typical Canadian carries $70 in their wallet, mainly $5 and $10 bills, and keeps roughly $185 in their vehicle glove box or dresser drawer.