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Sounds like the BankID system they have in Norway and Denmark (maybe also Sweden?).

Sweden also, yes. Although it is not similar. As I understand the way BankID works - it is responsibility of the bank that issued your BankID (or another company, as there are a few non-bank companies where one can get "Bank"ID) to identify you physically (using a passport, national ID, driving license etc). The government (in Sweden at least) is not (visibly) involved in the process.

I am not sure what you mean by "to identify you physically".

The way it works in Norway is that, once you have a bank account (which means you had to identify yourself using passport or similar) you can get a BankID which allows you to log in to a lot of online services (health, tax, employment, etc) without having to do anything else.

Yes, it's also standard in Sweden (BankID is a private entity though, not government controlled), so the swedish state want to create their own [0].

[0] https://feber.se/samhalle/regeringen-vill-ha-en-statlig-e-le...

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