ABSTRACT. This research explores the policy dilemmas of balancing data privacy and public interest in Self-Sovereign Identity (SSI) frameworks. The aim is to understand how SSI systems can protect personal data while meeting public needs, like fraud prevention or public health. SSI allows individuals to control their digital identities, but its implementation raises challenges. The literature review examines SSI applications, privacy, and public interest. Studies show SSI improves security in healthcare and land registries but faces legal and technical hurdles. Privacy is a strength, yet public interest often requires data access, creating conflicts. Ethical issues, like digital exclusion, also complicate SSI policies. Gaps in practical solutions and regulatory clarity are evident. The methodology involves a survey of 52 respondents and a review of existing studies. The survey asks about trust in SSI, data sharing, and privacy concerns. It uses a five-point scale to measure agreement on key issues, such as privacy standards and government involvement. The literature review supports the survey by providing context on SSI challenges. Findings show strong support for SSI’s privacy benefits, with 63.5% believing it outperforms centralized systems. However, 61.5% worry about data misuse by institutions, and 50% distrust government involvement. While 63.5% see SSI improving public services, 53.8% accept overriding privacy for national issues, though 34.6% disagree. Usability and legal barriers remain concerns. In conclusion, SSI offers privacy and security but struggles to balance public interest. Policymakers need clear rules to build trust and ensure accessibility. Future work should focus on practical solutions to create fair and effective SSI systems that serve both individuals and society.

Keywords: self-sovereign identity; data privacy; public interest; blockchain; policy dilemmas; digital identity; user control

How to cite: Szpilko, D., Hurjui, M. C., and Samoilă, A. (2023). “Data Privacy vs. Public Interest: Policy Dilemmas in Implementing Self-Sovereign Identity Frameworks,” Smart Governance 2(3): 22–36. doi: 10.22381/sg2320232.

Received 18 April 2023 • Received in revised form 20 September 2023
Accepted 23 September 2023 • Available online 28 September 2023