Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
UK-Google Deal Raises DPI Red Flags for Canada
Digital Public Infrastructure | July 9, 2025
Controversial UK Deal with Google Is a Warning for Canada as it Builds Digital Public Infrastructure (DPI)
On July 9, 2025, The Guardian reported that the UK government signed a direct contract with Google to deliver its "One Login" platform for public services. Apparently, the contract wasn't tendered (so it wasn't competitive), and critics say it's the beginning of handing control of sensitive citizen data to a single private, for profit company. At a time when adopting DPI is beneficial for the public, this story raises serious concerns about oversight, transparency, and long-term digital sovereignty. Since Canada has not yet delivered any core components of digital public infrastructure just yet, the UK's warning may be an unexpected benefit.
What the UK Did
The UK's central digital office selected Google Cloud to run the backend for government login services. This includes managing identity data and authentication across multiple departments. There was no public tender and the terms of the agreement aren't fully disclosed. Civil society groups warn that giving Google this level of control over national systems weakens accountability and creates vendor lock-in and risks public trust. The concern isn't just about who will provide the top modern tech but who governs the infrastructure that supports access to identity, payments and public services.
Public Infrastructure Needs Public Governance
Countries like Estonia and Singapore have shown that digital systems can be both modern and well governed. They built public identity systems with transparency and created legal frameworks that protect data control. Australia’s real-time payments and data sharing systems support innovation without giving control to a single provider. These models prove that digital infrastructure can be inclusive and accountable when designed properly. Canada should follow that example. Digital public infrastructure is not just about speed or efficiency. It is about trust.
See: Rachel Reeves: UK’s Financial Innovation Blueprint
When digital platforms are built without clear rules, the risks grow quickly. Single-provider systems can create long-term dependencies. If people cannot audit how their data is used or moved, public trust suffers. If regulators have no clear oversight, innovation slows.
DPI systems are difficult to replace once embedded. They must be built with full transparency, open standards, and meaningful accountability from the start.
DPI Is a Public Good and Must Be Built and Governed That Way
Digital ID, payment rails, and data sharing frameworks are not just technical upgrades. They are core infrastructure like roads or power grids and they must be governed in the public interest. That doesn't mean excluding private players. Fintechs, developers, and financial institutions all have a role to play. But the base infrastructure must remain open and responsive to the needs of Canadians. This includes protecting user consent, enabling portability, and supporting small and mid-sized innovators.
Outlook
There is limited live DPI in Canada today, so Canada's delay gives us a chance to get it right (not to forget, we are still behind). Canada must act with clarity and purpose. Every DPI decision should go through a transparent, public process. Open standards should be the default. Procurement must be competitive and auditable. And regulators must have clear authority to enforce privacy, consent, and security rules.
See: The Trifecta of India’s Digital Transformation is Turning Heads Globally
The UK deal shows what can go wrong. Canada has the policy tools, the talent, and the industry support to build better. DPI must not be outsourced without guardrails or built in silos. It must be designed as public infrastructure that enables secure, fast, and inclusive financial services. Canada’s position in the global digital economy depends on it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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