Technically it is feasible to provide privacy friendly identity management, for example by using attribute based credentials (ABCs). We are currently demonstrating their applicability in practice, even on smart cards, in the IRMA (I Reveal My Attributes) project. However, the use of ABCs in the real world is still very limited. One of the factors is the lack of a business case that supports the (substantial) cost of establishing an identity management infrastructure. In this (rather long) post I will sketch the issues, and indicate certain ways in which I think money can be made in an identity management infrastructure. The analysis is sketchy, primarily because I am not an economist. I would love a discussion on this topic, to advance the ideas in this post further.

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