What do you need your physical ID for?

Presenting it to police officers when you get pulled over.

Can the officers run a non-physical ID?

Yes if you know the numbers the last three digits of your driver's license number, they can run it. Can a Nova Scotia police officer run a non-physical ID? No.

Can police run an ID without internet? No.

Can present identification without power? Physical yes. Digital no.

Can you present identification without internet? Physical yes, digital no.

Can you fake a digital ID? On a server no.

Can the person checking the digital ID mistake you for somebody else? Yes.

Literally what the fucking problem does it fix?

By law government is going to have to print them exactly the same number of physical IDs and give it out to exactly the same number of people plus the cost of server infrastructure. Plus the cost of a data breach.

This is the kind of shit a CEO of an out of touch tech company who wants iot everything says while engineers in the back room look at him and laugh.