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Brownstone Institute

EU Digital Identity Wallet Pilots Roll Out Under the Radar

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14 minute read

From the Brownstone Institute

BY Stavroula PabstSTAVROULA PABST

As 2023 continues, the European Commission appears busy developing and running pilots for its EU Digital Identity Wallet (EUDI), which it intends to make available to all EU citizens in the near future. But while the European Commission (EC) boasts the prospective EUDI’s convenience, security, and wide range of prospective use cases in daily life, what’s less discussed is the tool’s potential for a bevy of ethical and surveillance-related issues.

What is the EU Digital Identity Wallet (EUDI)?

The EU Digital Wallet, often referred to as the EU Digital Identity Wallet (EUDI), is slated to be offered to the European public in the years ahead. According to the European Commission, “EU Digital Identity Wallets are personal digital wallets allowing citizens to digitally identify themselves, store and manage identity data and official documents in electronic format. These may include a driving licence, medical prescriptions or education qualifications.”

As legislation streamlining their slated use across Europe is finalized, the European Commission is advancing its efforts to roll out EUDIs amongst the general European public, where over 250 private corporations and public authorities are participating in four large-scale pilot projects. At the time of writing, the EU has invested €46 million into these pilots.

Indeed, a wide range of use cases are already being tested in the EUDI pilot projects. These include using the wallets to access government services, register, and activate SIM cards for mobile network services, sign contracts, facilitate travel, and present educational credentials. All together, these use cases suggest the Digital Identity Wallets’ prospective utilization across a wide range of services essential to daily life.

Convenience, But for Whom?

The European Commission frequently plays up the digital wallet’s convenience, with messaging boasting that users will be able to use the Wallets to check into hotels, file tax returns, rent cars, and securely open bank accounts. European Commission President Ursula von der Leyen highlighted the following in a 2020 State of the Union address, where she proposed the concept of a “secure European e-identity:”

Every time an App or website asks us to create a new digital identity or to easily log on via a big platform, we have no idea what happens to our data in reality. That is why the Commission will propose a secure European e-identity. One that we trust and that any citizen can use anywhere in Europe to do anything from paying your taxes to renting a bicycle. A technology where we can control ourselves what data is used and how.

Certainly, von der Leyen is correct that “we have no idea what happens to our data” when we create online accounts or log in to private services, positing that Digital ID can work to solve a core problem many people have when using the internet.

But critically, the European “e-identity,” and digital identification methods generally, pose a bevy of new issues for civilians in both the short and long term. Namely, while Digital ID can provide users access to services, a 2018 WEF report on Digital ID admits the tool’s propensity to exclude; “[f]or individuals, [verifiable IDs] open up (or close off) the digital world, with its jobs, political activities, education, financial services, healthcare and more.”

And indeed, within the control of a corrupted state or other governance structures, Digital ID’s propensity to “close off” the digital world appears ripe for misuse or abuse. Researcher Eve Hayes de Kalaf, for example, writes in the Conversation that “states can weaponise internationally sponsored ID systems” against vulnerable populations. She highlights an example from the Dominican Republic, where long-term discrimination against Haitian-descended persons manifested in the stripping of their Dominican nationality in 2013, rendering them stateless.

Meanwhile, it’s not difficult to imagine others falling through the digital “cracks” as Digital ID systems become mainstream and interconnected with, if not a prerequisite for, accessing critical social and financial services and supports.

As Jeremy Loffredo and Max Blumenthal elucidate in 2021 reporting for the Grayzone, for example, the 2017 introduction of Aadhaar, India’s biometric ID system, “which tracks users’ movements between cities,” led to a spate of deaths in rural India as difficulties accessing the Aadhaar system functionally blocked goods and benefits recipients from accessing the country’s ration stores, leaving them to even starve. India’s Scroll reported that, in a random sampling of 18 villages in India where biometric authentication had been mandated to access government-subsidized food rations, 37 percent of cardholders were unable to obtain their rations.

Despite the devastation it has caused, Aadhaar has ultimately been promoted as a success, and Rest of World reports that India’s setting up international partnerships to export its popular Unified Payments Interface (UPI), an instant payment system which uses the Aadhaar biometric ID system as its base, elsewhere.

Clearly, Digital ID poses significant possible societal harms if implemented hastily. Despite these possible harms, as I note for Unlimited Hangout, a near-universal adoption of Digital ID systems increasingly appears inevitable, with “Juniper Research [estimating] that governments will have issued about 5 billion digital ID credentials by 2024, and a 2019 Goode Intelligence report [suggesting] digital identity and verification will be a $15 billion market by 2024.”

Further, legislative strides have been made towards the digital wallet’s interoperability across the EU. In other words, key services are being hyper-centralized across borders and digitized in ways more traceable than paper counterparts could have been — all at the authorities’ fingertips.

Critically, the EUDI Wallet is apparently slated to connect with or otherwise include financial services, where EU citizens will be able to use their EUDI to open bank accounts and even apply for loans. Further, language from a European Central Bank policy brief on the European Digital Identity Framework suggests that the “EUDI wallet will bring benefits to all the stakeholders of the payment ecosystem” even including “foreseen support for the digital euro.”

While the European Commission’s keen to spotlight the EUDI’s alleged benefits for “the stakeholders of the payment ecosystem,” it appears less eager to discuss the dangers surrounding the plausible, if not likely, linkage of digital identity with money, and especially digital currencies, where elite capacities to track, or even manipulate or block civilians’ abilities to accept or make payments, could be unprecedented.

In short, EU Digital Identity Wallets are slated to be convenient for everyday civilian use. At the same time, these wallets, and other adjacent digital ID systems budding elsewhere, could also be convenient for governments and governance structures looking to surveil, monitor or otherwise manipulate or control critical aspects of citizens’ lives en masse.

The DIIA Connection

Despite its lack of EU member status and war on its hands to boot, Ukraine is involved in the EU Digital Wallet pilots. Namely, as I reported on my Substack, DIIA, Ukraine’s hyper-centralized state-in-a-smartphone app, is assisting the EU Digital Wallet’s rollout. In fact, Ukrainian Minister of Digital Transformation Mykhailo Fedorov highlighted in a Telegram post from July that DIIA representatives had even showed off the DIIA app’s capabilities at the POTENTIAL (Pilots for European Digital Identity Wallet) Consortium this summer.

Notably, many of the EU Digital Wallet’s use cases being tested in the pilots are already reality with Ukraine’s DIIA app. Indeed, Ukrainians use DIIA for a range of day-to-day activities, including to verify their identities to use banking services, hold a variety of digital IDs (such as drivers’ licenses and biometric passports) and even pay certain taxes and access social services for families. Ukraine’s Ministry of Digital Transformation has emphasized its intention to make all public services available online: DIIA is to be the “one-stop-shop” for these services.

And, as I’ve mentioned before in previous reporting for my Substack and Unlimited Hangout, DIIA’s scope creep continues as conflict deepens, with the app providing war-adjacent services. Ukrainian civilians affected by war have received stipendsthrough the app, for example, and can also verify their identities through DIIA to sign into e-Vorog (“e-enemy”), a chatbot that allows Ukrainian citizens to report information about Russian military whereabouts to the state.

All together, these conditions suggest DIIA may serve as a kind of blueprint for or precursor to Europe’s adjacent Digital Wallet, where the EU Digital Wallet, already a centralized application slated to assist citizens in a number of critical day-to-day services, could take on a growing number of government services across the European Union. While it remains to be seen what happens with the Digital Wallet rollouts in Europe, the wallet’s EU-wide implementation and smartphone app format, where features can be easily introduced, removed, or edited at will, means that scope creep on a comparable scale cannot be ruled out.

Conclusion

Many people are understandably interested in digital documents and other easy ways to access public services and complete tasks in a digital age. But these services and tools, when facilitated by states and adjacent governance structures, and unaccountable members of the private sector, come with significant ethical and surveillance concerns that should be extensively discussed and debated by the public. In this respect, it appears the prospective EU Digital Identity Wallet is no exception.

But debate or not, Digital Wallet pilot rollouts and EU member states’ respective Digital ID adoption is ongoing, with an EC press statement explaining that “everyone will have a right to have an EU Digital Identity” accepted in all EU Member States.

And while the European Commission communicates “there will be no obligation” to use an EU Digital ID Wallet, EC report Communication 2030 Digital Compass: The European Way for the Digital Decade elucidates that a 2030 target for the EU is for 80 percent of citizens to use an “electronic identification solution.” Ultimately, the mixed messaging leaves room for speculation that, even if Digital IDs are not obligatory when introduced, the general population could somehow be nudged or eventually even mandated into adopting Digital IDs to access key public services.

While Digital ID proponents emphasize the tools’ capacity for convenience and security in an increasingly online world, the ethical and privacy issues I’ve highlighted here signal that, if rolled out hastily, the EU Digital Identity Wallets could ultimately have disastrous and lasting consequences for privacy and civil liberties. And, once implemented, it seems Digital IDs could be difficult to roll back even if unpopular, ultimately nudging people into a technocratic nightmare they cannot easily escape.

In short, the dangers posed by emerging Digital ID systems like the EUDI Wallet cannot be discounted as Europe grows into its “digital decade.”

Author

  • Stavroula Pabst

    Stavroula Pabst is a writer, comedian, and media PhD student at the National and Kapodistrian University of Athens in Athens, Greece. Her writing has appeared in publications including Propaganda in Focus, Reductress, Unlimited Hangout and The Grayzone

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Brownstone Institute

If Trump Wins

Published on

From the Brownstone Institute

By  Bret Swanson  

How will he organize the “deportation” of illegal migrants? In the best case, it will be difficult. There will be scuffles and chases. Critics will charge the new Administration as cruel and worse. How much stomach will Republicans have for a messy process?

Trump enjoys the momentum. Four of the most recent major national polls show him up 2 to 3%, while Democratic-friendly outlets like the New York Times and CNN both show a TIE race in their final surveys. The 2016 and 2020 elections were razor close even though Clinton (5%) and Biden (8%) had solid polling leads at this point. We need to contemplate a Trump win not only in the electoral college but also in the popular vote.

Here are some thoughts:

  1. JD Vance ascendant, obviously. Big implications for the Republican trajectory.
  2. Will Trump replace Fed chairman Jay Powell? Or merely jawbone for a change in policy? In a new CNBC interview, former Fed governor Kevin Warsh argues that the Fed has juiced both the stock market and inflation. Would reducing inflation, which Trump has promised, automatically therefore lead to a stock market correction and economic slowdown? Not necessarily. If Trump unleashes productive economic activity and Congress ends the fiscal blowout, the Fed could normalize monetary policy without causing a major economic slump.
  3. Will Trump impose the broad and deep tariffs he proposed? Or will he mostly threaten them as a bargaining tool with China? I’m betting on some of the former but more of the latter. We notice, however, Trump allies are floating a trial balloon to replace income taxes with tariffs. As impractical and improbable as that may be, we’re glad to see the mention of radical tax reform reemerge after too long an absence from the national discussion.
  4. How will he organize the “deportation” of illegal migrants? In the best case, it will be difficult. There will be scuffles and chases. Critics will charge the new Administration as cruel and worse. How much stomach will Republicans have for a messy process? One idea would be to offer a “reverse amnesty” – if you leave peacefully and agree not to return illegally, we will forgive your previous illegal entry(s) and minor violations. This would incentivize self-identification and quiet departure. Plus it would help authorities track those leaving. Would migrant departures truly hit the economy, as critics charge? We doubt large effects. Substantial native populations are still underemployed or absent from the workforce.
  5. We should expect a major retrenchment of regulatory intrusions across the economy – from energy to crypto. Combined with recent Supreme Court action, such as the Chevron reversal, and assisted by the Elon Musk’s substance and narrative, it could be a regulatory renaissance. Extension of the 2017 tax cuts also becomes far more likely.
  6. Trump has never worried much about debt, deficits, or spending. But he’s tapped Elon Musk as government efficiency czar. It’s an orthogonal approach to spending reform instead of the traditional (and unsuccessful) Paul Ryan playbook. Can this good cop-bad cop duo at the very least return out-of-control outlays to a pre-Covid path? Can they at least cancel purely kleptocratic programs, such as the $370-billion Green Energy slush funds? Might they go even further – leveraging the unpopular spending explosion and resulting inflation to achieve more revolutionary effects on government spending and reach? Or will the powerful and perennial forces of government expansion win yet again, sustaining a one-way ratchet not even Elon can defeat?
  7. What if the economy turns south? One catalyst might be the gigantic unrealized bond losses on bank balance sheets; another might be commercial real estate collapse. Although reported GDP growth has been okay, the inflation hangover is helping Trump win on the economy. But many believe the post-pandemic economic expansion is merely a sugar-high and has already lasted longer than expected. A downturn early in Trump’s term could complicate many of his plans.
  8. How will NATO and its transatlantic network respond? Or more generally, what will the neocon and neoliberal hawks, concentrated in DC and the media, but little loved otherwise, do? Does this item from Anne Applebaum — arguing Trump resembles Hitler, Mussolini, and Stalin all rolled into one — portend continued all-out war on prudent foreign policy? Or will they adopt a more sophisticated approach? If the neocons move wholesale and formally (back) into the Democratic fold, how long will the coalition of wokes and militarists hold? On the economic front, Europe, already underperforming vis-a-vis the US, will fall even further behind without big changes. Reformers should gain at the expense of the transatlantic WEF-style bureaucrats.
  9. Can Trump avoid another internal sabotage of his Administration? Before then, if the election results are tight, will the Democrats seek to complicate or even block his inauguration? Can he win approval for his appointees in the Senate? Can he clean house across the vast public agencies? How long will it take to recruit, train, and reinvigorate talented military leadership, which we chased away in recent years? And how will Trump counter – and avoid overreacting to – taunts, riots, unrest, and lawfare, designed to bolster the case he’s an authoritarian?
  10. Will the Democrats reorient toward the center, a la Bill Clinton? Or will the blinding hatred of Trump fuel yet more radicalism? Orthodox political thinking suggests a moderation. Especially if Trump wins the popular vote, or comes close, pragmatic Democrats will counsel a reformation. James Carville, for example, already complains that his party careened recklessly away from male voters. And Trump’s apparent pickups among Black and Latino voters complicate the Democrats’ longstanding identity-focused strategy. Other incentives might push toward continued belligerence and extreme wokeness, however, and thus an intra-party war.
  11. Will the half of the country which inexplicably retains any confidence in the legacy media at least begin rethinking its information diet and filters? Or has the infowarp inflicted permanent damage?
  12. Will big business, which shifted hard toward Democrats over the last 15 years, recalibrate toward the GOP? Parts of Silicon Valley over the last year began a reorientation — e.g. Elon Musk, Marc Andreessen, David Sacks, and before them, Peter Thiel in 2016. But those are the entrepreneurs. In the receding past, businesses large and small generally lined up against government overreach. Then Big Business and Big Government merged. Now, a chief divide is between politically-enmeshed bureaucratic businesses and entrepreneurial ones. Does the GOP even want many of the big guys back? The GOP’s new alignment with “Little Tech” is an exciting development, especially after being shut out of Silicon Valley for the last two decades.
  13. Industry winners: traditional energy, nuclear energy, Little Tech. Industry losers: Green Energy, Big Tech, Big Pharma, Big Food. Individual winners: X (nee Twitter), Elon Musk, RFK, Jr.
  14. How will the Censorship Industrial Complex react? A Trump win will pose both a symbolic and operational blow to governmental, non-governmental, old media, and new media outlets determined to craft and control facts and narratives. It will complicate their mission, funding, and organizational web. Will they persist in their “mis/disinformation” framing and their badgering of old media and social media companies to moderate content aggressively? Or will they devise a new strategy? A.I. is pretty clearly the next frontier in the information wars. How will those who propagandize and rewire human minds attempt to program and prewire artificial ones?
  15. How will Trump integrate RFK, Jr. and his movement? Will RFK, Jr. achieve real influence, especially on health issues? Big Pharma and Big Public Health will wage a holy war to block reforms in general and accountability for Covid mistakes in particular.
  16. Trump has promised to end the war between Russia and Ukraine. On one hand, it should be easy. Despite what you hear from DC media and think tanks, Ukraine is losing badly. Hundreds of thousands are dead, and its military is depleted and faltering. Ukraine should want a deal quickly, before it loses yet more people and territory. Russia, meanwhile, always said it wants a deal, even before the war started, focusing on Ukrainian neutrality. Why Ukrainian neutrality should bother the US was always a mystery. And yet even critics of the West’s support for Ukraine, who want an agreement, think it will be difficult to achieve. The Western foreign policy establishment has invested too much credibility and emotion. It will charge “appeasement” and “betrayal” and make any deal difficult for Trump. Russia, meanwhile, has secured so much territory and now has Odessa and Kharkiv in its sights. Putin will not be eager to accept a deal he would have taken in 2021 or before. The far better path for all involved was a pre-war agreement, or the one negotiated but scuttled in April 2022.
  17. What if A.I. launches a new productivity boom, enabled by an agenda of energy abundance, including a nuclear power revival? The economic tailwinds could remake politics even more than we currently see.
  18. Can Trump, having run and won his last campaign, consolidate gains by reaching out and uniting the portions of the country willing to take an extended hand?

Republished from the author’s Substack

Author

Bret Swanson is president of the technology research firm Entropy Economics LLC, a nonresident senior fellow at the American Enterprise Institute, and writes the Infonomena Substack.

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Brownstone Institute

They Are Scrubbing the Internet Right Now

Published on

From the Brownstone Institute

By Jeffrey A TuckerJeffrey A. TuckerDebbie Lerman  

For the first time in 30 years, we have gone a long swath of time – since October 8-10 – since this service has chronicled the life of the Internet in real time.

Instances of censorship are growing to the point of normalization. Despite ongoing litigation and more public attention, mainstream social media has been more ferocious in recent months than ever before. Podcasters know for sure what will be instantly deleted and debate among themselves over content in gray areas. Some like Brownstone have given up on YouTube in favor of Rumble, sacrificing vast audiences if only to see their content survive to see the light of day.

It’s not always about being censored or not. Today’s algorithms include a range of tools that affect searchability and findability. For example, the Joe Rogan interview with Donald Trump racked up an astonishing 34 million views before YouTube and Google tweaked their search engines to make it hard to discover, while even presiding over a technical malfunction that disabled viewing for many people. Faced with this, Rogan went to the platform X to post all three hours.

Navigating this thicket of censorship and quasi-censorship has become part of the business model of alternative media.

Those are just the headline cases. Beneath the headlines, there are technical events taking place that are fundamentally affecting the ability of any historian even to look back and tell what is happening. Incredibly, the service Archive.org which has been around since 1994 has stopped taking images of content on all platforms. For the first time in 30 years, we have gone a long swath of time – since October 8-10 – since this service has chronicled the life of the Internet in real time.

As of this writing, we have no way to verify content that has been posted for three weeks of October leading to the days of the most contentious and consequential election of our lifetimes. Crucially, this is not about partisanship or ideological discrimination. No websites on the Internet are being archived in ways that are available to users. In effect, the whole memory of our main information system is just a big black hole right now.

The trouble on Archive.org began on October 8, 2024, when the service was suddenly hit with a massive Denial of Service attack (DDOS) that not only took down the service but introduced a level of failure that nearly took it out completely. Working around the clock, Archive.org came back as a read-only service where it stands today. However, you can only read content that was posted before the attack. The service has yet to resume any public display of mirroring of any sites on the Internet.

In other words, the only source on the entire World Wide Web that mirrors content in real time has been disabled. For the first time since the invention of the web browser itself, researchers have been robbed of the ability to compare past with future content, an action that is a staple of researchers looking into government and corporate actions.

It was using this service, for example, that enabled Brownstone researchers to discover precisely what the CDC had said about Plexiglas, filtration systems, mail-in ballots, and rental moratoriums. That content was all later scrubbed off the live Internet, so accessing archive copies was the only way we could know and verify what was true. It was the same with the World Health Organization and its disparagement of natural immunity which was later changed. We were able to document the shifting definitions thanks only to this tool which is now disabled.

What this means is the following: Any website can post anything today and take it down tomorrow and leave no record of what they posted unless some user somewhere happened to take a screenshot. Even then there is no way to verify its authenticity. The standard approach to know who said what and when is now gone. That is to say that the whole Internet is already being censored in real time so that during these crucial weeks, when vast swaths of the public fully expect foul play, anyone in the information industry can get away with anything and not get caught.

We know what you are thinking. Surely this DDOS attack was not a coincidence. The time was just too perfect. And maybe that is right. We just do not know. Does Archive.org suspect something along those lines? Here is what they say:

Last week, along with a DDOS attack and exposure of patron email addresses and encrypted passwords, the Internet Archive’s website javascript was defaced, leading us to bring the site down to access and improve our security. The stored data of the Internet Archive is safe and we are working on resuming services safely. This new reality requires heightened attention to cyber security and we are responding. We apologize for the impact of these library services being unavailable.

Deep state? As with all these things, there is no way to know, but the effort to blast away the ability of the Internet to have a verified history fits neatly into the stakeholder model of information distribution that has clearly been prioritized on a global level. The Declaration of the Future of the Internet makes that very clear: the Internet should be “governed through the multi-stakeholder approach, whereby governments and relevant authorities partner with academics, civil society, the private sector, technical community and others.”  All of these stakeholders benefit from the ability to act online without leaving a trace.

To be sure, a librarian at Archive.org has written that “While the Wayback Machine has been in read-only mode, web crawling and archiving have continued. Those materials will be available via the Wayback Machine as services are secured.”

When? We do not know. Before the election? In five years? There might be some technical reasons but it might seem that if web crawling is continuing behind the scenes, as the note suggests, that too could be available in read-only mode now. It is not.

Disturbingly, this erasure of Internet memory is happening in more than one place. For many years,  Google offered a cached version of the link you were seeking just below the live version. They have plenty of server space to enable that now, but no: that service is now completely gone. In fact, the Google cache service officially ended just a week or two before the Archive.org crash, at the end of September 2024.

Thus the two available tools for searching cached pages on the Internet disappeared within weeks of each other and within weeks of the November 5th election.

Other disturbing trends are also turning Internet search results increasingly into AI-controlled lists of establishment-approved narratives. The web standard used to be for search result rankings to be governed by user behavior, links, citations, and so forth. These were more or less organic metrics, based on an aggregation of data indicating how useful a search result was to Internet users. Put very simply, the more people found a search result useful, the higher it would rank. Google now uses very different metrics to rank search results, including what it considers “trusted sources” and other opaque, subjective determinations.

Furthermore, the most widely used service that once ranked websites based on traffic is now gone. That service was called Alexa. The company that created it was independent. Then one day in 1999, it was bought by Amazon. That seemed encouraging because Amazon was well-heeled. The acquisition seemed to codify the tool that everyone was using as a kind of metric of status on the web. It was common back in the day to take note of an article somewhere on the web and then look it up on Alexa to see its reach. If it was important, one would take notice, but if it was not, no one particularly cared.

This is how an entire generation of web technicians functioned. The system worked as well as one could possibly expect.

Then, in 2014, years after acquiring the ranking service Alexa, Amazon did a strange thing. It released its home assistant (and surveillance device) with the same name. Suddenly, everyone had them in their homes and would find out anything by saying “Hey Alexa.” Something seemed strange about Amazon naming its new product after an unrelated business it had acquired years earlier. No doubt there was some confusion caused by the naming overlap.

Here’s what happened next. In 2022, Amazon actively took down the web ranking tool. It didn’t sell it. It didn’t raise the prices. It didn’t do anything with it. It suddenly made it go completely dark.

No one could figure out why. It was the industry standard, and suddenly it was gone. Not sold, just blasted away. No longer could anyone figure out the traffic-based website rankings of anything without paying very high prices for hard-to-use proprietary products.

All of these data points that might seem unrelated when considered individually, are actually part of a long trajectory that has shifted our information landscape into unrecognizable territory. The Covid events of 2020-2023, with massive global censorship and propaganda efforts, greatly accelerated these trends.

One wonders if anyone will remember what it was once like. The hacking and hobbling of Archive.org underscores the point: there will be no more memory.

As of this writing, fully three weeks of web content have not been archived. What we are missing and what has changed is anyone’s guess. And we have no idea when the service will come back. It is entirely possible that it will not come back, that the only real history to which we can take recourse will be pre-October 8, 2024, the date on which everything changed.

The Internet was founded to be free and democratic. It will require herculean efforts at this point to restore that vision, because something else is quickly replacing it.

Authors

Jeffrey A Tucker

Jeffrey Tucker is Founder, Author, and President at Brownstone Institute. He is also Senior Economics Columnist for Epoch Times, author of 10 books, including Life After Lockdown, and many thousands of articles in the scholarly and popular press. He speaks widely on topics of economics, technology, social philosophy, and culture.

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