if your digital ID is tied to your phone (which is eventually where things are going), that is exactly what is going to happen. There is no reason that it would stop somewhere in the middle.
Why would anyone propose, and why would anyone agree to, Digital/Physical ID becoming mandatory for mundane transactions? It doesn't make any sense and it would never fly.
No??? What do you imagine, that every single transaction you make, like buying bread, will require a Digital ID? Why on earth would you imagine that?