Can a simple click create the same legal obligations as signing a contract? In the era of digital governance and electronic transactions, the answer is evidently yes. The introduction of the digital signatures in Cyprus brings citizens face to face with a new reality. They sign more easily than ever before, yet they are bound just as seriously.

One of the key questions that arises is whether the digital signature is something different from an electronic signature or whether it replaces it. From a legal perspective, the answer is clear. The digital signature is not a new or independent concept. It is a form of electronic signature, that is, a practical method through which a user is identified, expresses their intent, and becomes legally bound in a digital environment.

The legal framework

The relevant legal framework has been shaped at the European level. As early as Directive 1999/93/EC, the need for legal recognition of electronic signatures was acknowledged, laying the foundations for their equivalence with traditional handwritten signatures. This development was completed with Regulation (EU) 910/2014, known as eIDAS, which has direct effect in all member states, including Cyprus.

The eIDAS Regulation establishes a fundamental principle, an electronic signature cannot be denied legal effect and admissibility as evidence solely because it is in electronic form. At the same time, it introduces different levels of electronic signatures (simple, advanced and qualified), with the qualified electronic signature being fully equivalent to a handwritten one.

However, this does not mean that the other forms lack legal validity. The decisive factor remains the ability to link the act to a specific person and the existence of an intention to be bound.

Recent case law is also of particular importance. In Case C-466/22, V.B. Trade OOD v. the Bulgarian Tax Authorities (judgment of February 29, 2024), the Court of Justice of the European Union clearly confirmed that electronic signatures must be assessed in the same way as handwritten ones.

The court emphasised that their evidential value cannot be questioned due to their form and that national courts must examine the factual circumstances of each case, such as the reliability of the system and the link between the signature and the individual.

From physical presence to OTP

In the Cypriot context, citizens are already familiar with electronic signatures, mainly through procedures involving physical presence, such as in banks, post offices, courier services or hotels. In these cases, the signature is made on a digital device but in the presence of an employee, which creates a sense of security and control.

The digital signature, however, differs in a fundamental way. It does not change the legal nature of the signature but transfers the entire process to the user.

There is no physical presence or immediate human oversight. Identification and confirmation rely on personal access credentials and a one-time password (OTP), sent to the user and serving as final confirmation.

This technical detail has substantial legal significance. The system presumes that whoever uses the correct credentials and enters the OTP is the person signing. Consequently, responsibility is transferred almost entirely to the user, who must ensure the confidentiality of their credentials.

Convenience and responsibility

The advantages of the digital signature are evident. Transactions are completed instantly, bureaucracy is significantly reduced, and physical presence becomes unnecessary. Moreover, every action is digitally recorded, enhancing transparency and allowing traceability of transactions.

The most significant change, however, is not technological but psychological. This convenience comes with increased responsibility. The user commits themselves without being in front of another person, while the security of the process largely depends on their own vigilance. In case of dispute, proving the facts may become particularly complex and demanding.

In my view, the digital signature is a necessary development and an important step toward the digital modernisation of administration and transactions. At the same time, however, it creates a potentially dangerous illusion of simplicity. Citizens do not sign less, they sign more easily and more frequently, not always fully aware of the gravity of their actions.

In the new digital era, the signature does not disappear. It simply becomes invisible. And every time we click “confirm,” we are not merely making a choice, we are undertaking a legal commitment with real consequences.