eIDAS 2 and the EU Digital Identity Wallet

The regime itself mandates, pilots or funds privacy-preserving technology.

What eIDAS 2 and the EU Digital Identity Wallet actually says

The clearest counterexample to the idea that regulators are uniformly against cryptographic privacy: here EU law names the technology and requires it. Recital 14 says member states should integrate privacy-preserving technologies such as zero knowledge proof, so a relying party can validate that a statement is true without seeing the data behind it. Recital 32 requires providers to be unable to see the details of users' transactions. Recital 59 requires selective disclosure of individual attributes. Member states are to make wallets available to all citizens and residents by the end of 2026. The same legal order that will bar anonymous exchange accounts in July 2027 is putting zero-knowledge credential technology into roughly 450 million hands.

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.