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EU Independent MP Rob Roos has questioned the EU parliament's new law on digital identity for member states to offer citizens and businesses digital wallets to link with their national digital identities.

Mr Roos says the digital ID is an "instrument nobody asked for" and there is already backlash against the decision.

"The European Parliament and the members of it reached an agreement last week on the digital identity," he told SKy News Australia host Rowan Dean.

"Despite so many warnings, so many security specialists and privacy experts sounding the alarm clock, they still reached an agreement and especially in the Netherlands this is extremely controversial.

"A parliamentary majority demanded that the Deputy Minister for the digitalisation would not agree to this in the EU but she did it anyway, which begs the question what is the status of our parliament, are we still a democracy?"