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How does the Digital Key work in the BMW X7?

I have heard about the Digital Key feature in the BMW X7, but I am not sure how it works. Can someone explain it to me in detail?

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The Digital Key feature allows you to unlock and start your BMW X7 using just your smartphone.

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You can also share your Digital Key with up to 5 people, giving them access to your car during a specific time frame.

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