The problem is national security consequences of it. Handing out nation-backed ID card tied to secure identity undermines sovereignty of the nation, because it

The problem is national security consequences of it. Handing out nation-backed ID card tied to secure identity undermines sovereignty of the nation, because it means Walmart and likes can (illegally) exert political influence by silently or openly classing and discriminating you. It is important that personal ID is only transparent and spoof-proof to legitimate government the individual identifies with, and that soft ID databases that private entities may build have limitations in its completeness. That's not trivial to do right, especially through bureaucratic government processes.