This appears to be backfiring spectacularly. It is a shame in many ways because a decent digital ID system would be very beneficial. The problem is the approach is completely wrong. There are already 10+ competing ID system which are now largely digital. A solution on how to bring all that together done well could make things significantly more secure by reducing the attack surface and make it much more reliable.

Instead it looks like they are going for 1 more competing system, the implementation of which will be steered by politics and ideology rather than technology and technical requirements.