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G+D's Lars Hupel writes that eSIMs replace traditional, removable SIM cards with an embedded SIM chip directly on the device. SIM cards no longer need to be physically replaced for an update. Instead, a new eSIM can be simply downloaded. Starting with the iPhone 14 in 2022, Apple has stopped shipping physical SIM trays in the US. New models use eSIM only. By 2030, the eSIM adoption rate will reach 80% in Latin America, Southeast Asia and the Eurozone, while Middle East and North Africa is expected to reach 70%. Secure CBDC wallets could be run easily on eSIMs. https://www.gi-de.com/en/spotlight/digital-security/time-to-adopt-the-eSIM

The eSIM ecosystem offers an equivalent level of security and protection to that provided by the removable SIM card. The protocols are based on state-of-the-art cryptographic mechanisms and secure the privacy of the end user. A public key infrastructure (PKI) governed by the Global System for Mobile Communications Association (GSMA) provides a secure authentication of the entities of the ecosystem. Manufacturers or providers of eSIM solutions have to undergo GSMA certification in order to be admitted into the ecosystem.

The European Central Bank (ECB) is inviting experts in offline payments to participate in conversations to explore options for an offline digital euro as part of its retail central bank digital currency (CBDC) work. It wants to understand the marketplace for using embedded secure elements (eSEs) and embedded SIMs (eSIMs) in user devices. Secure elements are standard-compliant chips that ensure safe data storage embedded in most smartphones and many wearables, typically for payments. eSIMs facilitate user network switches via software updates, instead of swapping physical SIM cards. Both could play roles in offline payment functionality. The experts are to be drawn from original equipment manufacturers (OEMs), mobile network operators (MNOs) and specialized trusted service managers, but none that are participating in any of the ECB public tenders on digital euro components. https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews240801.en.html