5 Reasons Verifiable Credentials Are Not Yet Widely Adopted
Verifiable credentials are shaping up to become the identity standard of the future. Not only do they have many possible use cases, but they can bring real business benefits.
At the same time, verifiable credentials aren’t exactly widespread. In 2023, Gartner placed VCs into its “early mainstream” category with between 5% and 20% market penetration among their target audience.
Why is that?
Let’s look at what might be holding verifiable credentials from reaching their full potential.
5 reasons for the low adoption of VCs
There are at least five broad reasons why verifiable credentials haven’t been widely adopted yet.
1. Limited awareness
Quite simply, many organizations might not even realize that verifiable credentials exist, let alone understand what they are and why they matter.
A recent survey on the state of the EU Digital Identity Wallet found that “awareness and explaining the essence” of these standards is a key hurdle when it comes to adoption.
If decision makers still treat verifiable credentials and zero-knowledge proofs as remote, abstract terms, it’s hard for them to make it onto business roadmaps.
2. VCs are not yet enforced
Adoption is often driven by a pressure to comply with regulations.
In the case of verifiable credentials, companies might still be waiting on clear rules before taking the plunge. The EU Digital Identity Wallet won’t become a reality until 2026 at the earliest. This means verifiable credentials are mostly seen as an optional step.
Without clear deadlines and enforcement, many businesses may prefer the “wait and see” approach.
3. No existing ecosystems
This is a bit of a chicken-and-egg situation.
Nobody wants to go first until they’re sure there’s a big enough network effect. Issuers might not want to roll out verifiable credentials until enough verifiers are ready to accept them. In turn, verifiers might hesitate until they’re sure there will be enough holders.
It certainly doesn’t help that many technical standards and regulatory frameworks are still a work in progress, adding to the uncertainty. Without an established ecosystem, the uptake is naturally slower in the early stages.
4. Unclear business model
And then there’s the non-trivial question of who pays for what.
Most parties agree that the average person (“holder”) shouldn’t have to pay for using verifiable credentials. But what about the issuers and verifiers? How much of a burden should each party carry, and what’s a reasonable way to split the costs? Will VCs follow a subscription model or charge per verification?
Unsurprisingly, this can make companies and organizations hesitant. How do you evaluate the potential ROI of verifiable credentials when you don’t know the cost structure? This makes it difficult for a company to make a business case for VCs, especially if it’s not aware of their possible benefits.
5. Not a pressing issue
Let’s be honest: For many businesses, this might just be a simple matter of priority.
If my competitors aren’t implementing VCs and there’s little short-term regulatory pressure to act, why should I dedicate my limited internal resources to exploring an abstract future tech?
Most organizations already have enough on their plate when it comes to identity-related initiatives. Combined with all the uncertainty we discussed in previous points, it’s easy to see why VCs might end up way down on the list of priorities.
This is your chance to act
After reading this article, you might be tempted to conclude that waiting is the best option.
But remember, verifiable credentials aren’t a hypothetical. They’re coming.
This is your chance to be one of the early adopters and get started with VCs ahead of the competition. Not only does this future-proof your company and help you comply with upcoming regulations, but you get to shape the ecosystem as it develops by participating in pilot programs or securing industry partnerships.
If done right, verifiable credentials can become a source of competitive advantage instead of an annoying technical afterthought.
Want to learn (a lot) more about verifiable credentials? Join us at Criipto Connect 2025!
Our upcoming Criipto Connect conference in Copenhagen is all about verifiable information and its impacts.
So join us on Thursday, November 13, 2025.
Spend a day with fellow leaders, innovators, and decision-makers to discover what’s next in the evolution of digital identity.
