I have this in my BMW currently. I haven't used my keys since getting the car. It’s an amazing feature until you valet and don't have a key card on you. First-world problems aside, does it require new hardware for the car to support it, or is this a software upgrade only?
BMW has two different digital key types. Digital Key and Digital Key Plus. The Plus version already uses UWB so it might be software upgradeable to this new version. It depends on what's actually new in it and details haven't been released yet.
You can tell which version you have by how it operates. If you need to hold your phone up to the door handle to open and then place the phone in the charge tray to start the car, you have Digital Key. If you can leave your phone in your pocket/bag, you have Digital Key Plus.
As far as valet, you should have received a key card with the car and if not, you can probably buy one. Leave the card in the car but make sure it's deactivated so that you're not leaving a valid key inside the car. Then when you pull up to valet, you can activate the card in iDrive and hand it to the valet. Just be sure to deactivate the card again when you get your car back. It's a little bit of a pain but at least you have it with you if you unexpectedly valet the car or need a tow or service or whatever and didn't plan ahead to bring a fob.
My 2025 X5 has Digital Key Plus and I have it set up on my phone, yet still I always carry a fob. I've even noticed sometimes that my phone "dings" with the digital key when I touch the door handle even when the fob is with me, so it's clearly sensing the phone before the fob. Yet I still carry the fob. It feels absolutely bizarre to me to drive away without a key and just hope that technology works like it's supposed to when I try to start the car to come home. We all know technology ALWAYS works exactly like it's supposed to, lol. And no, I'm not 100 years old. I'm early-40s and work in IT.
Yes no manufacturer has a car that randomly stops when the key is not detected, that would be crazy frankly.
And extremely unsafe! NHTSA would not allow that.
The worst that happens is you can't restart the car after you turn it off, which is still a problem if you get stranded and need to call someone to bring you the spare key, but the car will never just turn itself off while you're driving because it no longer senses a key. It will, however, annoy you to death with warning messages and dinging while you're driving so that hopefully you don't drive too far away from wherever it was you "lost" the key (usually your spouse/partner had the key and you dropped them off somewhere and they still have the key when you drive away).