Yes
And that is exactly why ``privacy by default'' is important, and the only way to sustainably do that is to not divulge any information except precisely what is needed. Both by removing the need to hand over anything in the first place --and there are quite a few things that require ``ID'' now which could be handled in a way that they don't require ``ID'', only you get no choice now-- and after that by employing fancy math that lets you prove you have/are/know something without divulging what it is: ``zero-knowledge proofs''.
If the government wants to do something useful for a change, they should build an ``ID framework'' not based on pinning people to the rather schizophrenic and out-of-touch current government definition of ``identity'', but based on facilitating privacy by design while at the same time enabling, in a different and more sustainably private way, all those things that require disclosing ``ID'' now.
Or they can hire me to run the scheme. Anonymous Coward for privacy minister.
There are certainly good reasons why we require and are required to provide ``ID''. I'm saying we can and must revisit why we do what we do and find better ways to do it.
It's not exactly rocket science, but it's so outside the ideas entrenched in law and government current practice that the current crop --government and corporate-- can't do it. So the first thing that must happen is for the population, that is you, jill and jack citizen, to realise the current situation is not sustainable and to support, and demand, finding new ways of doing business.