A government digital identity means that every informal transaction in the economy that uses it relies on the state as an inline broker. We can see this today with vax passports, where just this month you have to check-in with the government before you can enter a restaurant. (only temporary, surely) It's designed to manage people like livestock, and we all know that some pigs are more equal than others. Even vax passports and so-called "mandates," have exploited loopholes in our high trust societies and assumed formlessness as to avoid being challenged legally. Digital identity regimes will use the same indirect methods. This is their strategy.
Why do you need to prove your identity unless you there is some intent to prosecute you? Most of the value in the economy is based on people taking on transaction risk on behalf of others, so replacing it with digital identity will destroy degrees of economic freedom and opportunity for your kids and grandkids. Identity does not create opportunity, it limits it.
Civilization doesn't survive malicious institutions that turn inward against the people they serve, and I hope other technologists think seriously about identity and consider the consequences of it falling into the hands of an enemy or evil institution, because having worked in identity, I guarantee it will.