The proposed "solution" will indeed protect against identity theft by non-state actors, but it would also give the government the power to lock you out of your job, your bank, your online accounts, medical care, and whatever other services and businesses that trust the government-generated token. AND THEY WOULD BE ABLE TO DO ALL OF THIS INSTANTLY AT THE SAME TIME. The government just has to refuse to issue you tokens.
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The proposed "solution" will indeed protect against identity theft by non-state actors, but it would also give the government the power to lock you out of your job, your bank, your online accounts, medical care, and whatever other services and businesses that trust the government-generated token. AND THEY WOULD BE ABLE TO DO ALL OF THIS INSTANTLY AT THE SAME TIME. The government just has to refuse to issue you tokens.