We already do this in The Netherlands. We can use our drivers license or newer id cards to activate a digital identity app from the government, by scanning the nfc chip in it. Works great honestly.
I believe many services you log into then do not store much personal information, only what’s needed to connect to your id and of course whatever is needed for the service itself.
Does this work for companies as well? I've only ever encountered this kind of verification as part of the Digid login process, which is only usable for government and semi-government websites. I don't think you can use Digid to prove to an online web store that you're allowed to order alcohol, for instance.
With the way Digid works, I'm not too sure if I'd trust the system that much either, to be honest. Allowing the government to track what citizens visit what websites when seems like a massive privacy infraction. There are technologies that can fix these shortcomings, but I don't think the government cares about them.
Alright, that's what I thought. I believe iDIN would come closer, though that's bank-based rather than government-based.
I don't think the Australian system introduced in the linked article is comparable to the card-based Digid system; the risks and benefits of a system where companies can authenticate people using government ID are very different from just authenticating to (semi) government.
We can do a lot of paperwork online, it's great when it works. I belive is one of the few "internet stuff" that wasn't just regarded as a waste of money. (we had a scandal about a simple site that costed millions).
You can pay taxes and other services, change your family doctor, see documentation related to unemployment/social security, etc
The "verification" is done by a few online private providers via Webcam or you can do it at the post office (still private but the line is blurred).
The name is "IO", a wordplay on Imput/output and the fact that "io" means "me" in Italian