Yes, centralized identity at the federal/national levels makes the abuses of an administrative state possible. I think most of the complaint about “digital ID” is not from what is presently being proposed but the fear of what an administrative state could do with it. An SSN is already ‘required’ for so much of our lives it’s not really voluntary though i don’t believe it is technically mandatory to have one. But that just means they have all the carrots and sticks structured to get us to opt in. Once a unique individual is tied to a unique value the state can then determine the standing of that individual. And if the state is allowed to restrict access to systems with that value then we are in a tough spot. But the Trojan horse was allowing a unique individual to be represented with an immutable value at all. I can make similar arguments about street addresses. Whatever the state wants to tax it must be able to uniquely map and track.
