I’m a little out of the loop so it’s a genuine question.
I suspect that people are scared because the word “digital” is involved.
I can’t get a job in the US without presenting a social security card and drivers license, or alternatively, a passport (and there are a few other methods of identification and proof of right to work). I have to prove that I have the legal right to work and the employer submits my information to an electronic system.
It would actually be nice if the process was more digital rather than having to send my employer copies of my ID(s) or physically presenting them.