I agree on the cash point, but I’m not even convinced that ID should be required for minimal, daily participation in society. Maybe a lack of ID prevents you driving, buying alcohol, or voting, but if you accept those consequences, you shouldn’t have to provide ID to anyone.
If we're talking daily participation, you don't (or shouldn't) need ID. For one off events like registration or entry, then ID is a fair requirement (sometimes).
I don't know who is arguing for bank accounts without ID though.
