The whole point here is how to entirely get rid of the wallet. your ID, your cards, receipts, parking tickets etc should all be digital. in fact, that is exactly what WeChat/Alipay are offering or battling for.
WeChat based ID card with approval from the Public Security Bureau: https://www.huxiu.com/article/169540.html
I don't know what it means, but reading this all I could think was how there is absolutely no way Penndot is ever going to make Drivers Licenses in PA digital. Ever. They only just let people register to renew online like 2 years ago. You still have to drive to the DMV anyway, you can just sign up to get it renewed in advance for "fast processing".
State institutions resist technology to a pathological degree. At least in regards to ease of constituent use. They all have websites and have facebook groups and such, but they (by law, usually) never use it to improve the experience interacting with them.
There's just no plausible scenario where I get arrested and taken to jail simply for not having a physical ID with me.