There's a system that already exists in Australia (TDIF) based on OAuth and OIDC, but it's not legislated and lacks regulatory oversight. This uplifts and codifies this to a federal level and adds some additional governance and oversight in a similar way to the Consumer Data Right (CDR).

It's Authentication/Identity. But really it's a federated system of consent where you can allow one authoritative holder of some information about you to transmit it to another. Simple E.g. omitting many details but say some federal government agency (A) wants my driver's licence number. because I use the same identity for both (A) and my state department of transport (B) I can tell (B) it's ok to send it to (A). (A) and (B) are both in the "network" which is governed by a central Register (R) and verifies each to each other so they can securely share data over standardized channels. The central register does not get involved beyond legitimising (A) and (B) to each other. The benefit is for a lot of cases the specific information stays with the relevant party, you just consent to when one needs to borrow some from another.

Digital ID is on of the constant boogeymen of the modern conspiracy grift industry. Right up there with WEF and vaccines.