What's so dystopian about it? Is this just the weird Anglo-Saxon cultural thing of ID cards being way worse than passports and state IDs for incomprehensible reasons?
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.