Phones became wallets except we don't control them.
Everything in your wallet is yours, it doesn't change unless you make the change. No-one can decide what the contents do or what they are, how they watch you or report your behaviour. The contents of a wallet are free.
None of that seems to have anything to do with a digital ID.
Ip68 is a mere 1.5 meters! It’s still a dystopia until we get iso6425.