So who/what entity becomes the (VC) issuer? As i understand it now, you need a bank account to get a credit card to get a dns account. How will that "get started" process change w DIDs?

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Anyone.

Okay but there must be some steps to the issuance, else the value of the verication is nil

Check out valid3.id, an effort to rebuild the Web of Trust witn DID and VC.