There is virtually no difference with a private entity which can be compelled by the government to do the same, plus has its own profit motive which could also

There is virtually no difference with a private entity which can be compelled by the government to do the same, plus has its own profit motive which could also create incentive to do it. There must be a non-repudiation and integrity check to verify transactions (e.g., in Estonia I sign digitally all my transactions), so the latter problem is easier to mitigate.