As Winston Churchill famously said, “never let a good crisis go to waste.” That’s when governments reach for new powers — and citizens, frightened or exhausted, nod along. In the wake of the pandemic, when vaccine passports became the norm and QR codes decided who could travel, a new kind of governance quietly took root: one built on digital identity. Now, as Britain’s prime minister Keir Starmer announced a national digital ID to curb illegal immigration, the question resurfaces with renewed urgency — is the UK building the infrastructure of efficiency, or the architecture of control?
How It Works
The UK’s proposed system, described by officials as a “modern solution” to verify who can work and who cannot, has brought digital IDs back into the headlines. Under the plan, residents will eventually hold their credentials — from driving licences to immigration status — inside a smartphone app called the “GOV.UK Wallet.” The stated goal is to make life simpler and cut down on fraud. But critics see something else: a quiet shift toward a surveillance society where access to work, travel and even healthcare could hinge on a digital pass managed by the state.
The idea is not new. During the pandemic, when vaccine passports and health credentials were proposed across the world, digital identity became a lightning rod for distrust. It symbolised something larger — the sense that technology, under the banner of safety and convenience, was becoming a tool of control.
At its simplest, a digital ID is a data-based version of an individual — a bundle of verified attributes such as name, age, or citizenship, stored electronically and authenticated through biometric or cryptographic checks. Supporters call it the next logical step for modern governance: one secure, streamlined identity that unlocks everything from opening a bank account to accessing public services.[1] In theory, it eliminates paperwork, reduces fraud and integrates society into a single, frictionless digital ecosystem.
The Marketing
The World Economic Forum (WEF) has been one of the loudest champions of this vision. In a series of reports stretching back decades, it argues that “foundational identity unlocks value” — a phrase that sounds like progress in a Davos conference hall, but to many evokes a more dystopian future.[2] Bill Gates’s ID2020 alliance, launched with similar language of inclusion and innovation, has pushed for universal digital identity as a human right. It is also backed by many of the same corporations that build the underlying infrastructure — Microsoft, Accenture, Mastercard — blurring the line between social good and data capitalism.
In the UK, digital identity carries historical baggage. Tony Blair’s Labour government tried a national ID card in 2006, backed by a vast database of personal information.[3] It was abolished five years later after fierce public opposition. Now, nearly two decades later, the same idea is being reintroduced — only this time dressed as a smartphone app rather than a plastic card. The language has changed, but the logic has not: to prove who you are, digitally, in order to participate in society.
Tracking and Tracing
Behind the sleek marketing lies a simple mechanism. A digital ID begins with credential issuance: your identity is verified, often through biometrics, and stored securely by a government or authorised body. You carry that credential in a mobile wallet. When you apply for a job, rent a flat, or cross a border, the system checks your digital ID and logs the transaction. Each verification leaves a trace — time, place, service used. Multiply that across millions of citizens, and a vast data network emerges, mapping the movements and interactions of an entire population.
Supporters say this can be done privately and securely. However, critics counter that the problem is not technical but political. When a government, or a handful of corporations, can determine who has “verified” access to essential services, identity stops being something you possess and becomes something you are granted. The gatekeeper gains power over the gate.
critics counter that the problem is not technical but political. When a government, or a handful of corporations, can determine who has “verified” access to essential services, identity stops being something you possess and becomes something you are granted. The gatekeeper gains power over the gate
The Social Credit Score
Across the world, this quiet revolution is already under way. India’s Aadhaar system, the largest biometric ID database on Earth, covers more than a billion people. What is less publicised is that the details of 1.1 billion Indians were being sold online for as little as 500 rupees (£5) in a massive security breach.[4] The European Union plans its own “Digital Identity Wallet” by 2030. In Africa and Latin America, development agencies and Western tech firms are helping roll out ID systems tied to financial inclusion projects. The WEF openly describes this as a “global identity ecosystem.” But many suspect it’s little more than digital colonialism — exporting Western data standards and power structures to societies that have little say in how their identities are used.
China offers the starkest warning. Its social credit system, though not identical to digital ID, is built on the same foundation: a series of big data and AI-enabled processes that effectively grant subjects a social credit score based on their social, political and economic behaviour.[5] Citizens deemed “untrustworthy” have been barred from trains and flights, their movements restricted for reasons as vague as unpaid fines or online criticism. The Washington Post recently reported that China is expanding an “internet identity” programme that will tie every online interaction to a verified real-world ID, effectively ending anonymity.[6] It’s a glimpse of what can happen when identity becomes governance — when a digital profile determines the boundaries of your freedom.
“Security Through Verification”
In liberal democracies, such a system may seem unimaginable. But the logic behind it, “security through verification,” is the same. During Covid, governments normalised digital checkpoints for movement. Now, migration is the new justification. By linking digital ID to immigration enforcement, leaders gain a powerful political tool. From Nigel Farage in the UK to Donald Trump across the Atlantic, their provocative rhetoric on immigration has primed their constituents towards more draconian measures. Those who object can be painted as soft on illegal migration. The public, fearful of insecurity, accepts more control. But as history shows, powers granted in times of crisis rarely disappear when the crisis does.
Behind all this is a deeper economic story. In the data-driven capitalism of the 21st century, identity itself is currency. Every verified interaction – logging into a service, proving eligibility, authenticating online – produces data that can be analysed, traded, or weaponised. Digital ID systems promise efficiency, but they also offer opportunities of greater profit. Global consultancies, cybersecurity firms, and fintech giants stand to benefit from the infrastructure of verification. The more a society digitises identity, the more value flows through the companies that manage it.
“The UK is on the edge of a digital revolution that could make us global leaders in blockchain and digital assets,” said Umazi CEO Cindy van Niekerk. “If we harness our strengths in financial services and innovation, we can shape decentralised technologies that define the next generation of trusted transactions.”[7]
Backlash
Opposition to the UK’s plan is already mounting. Civil-liberties groups warn of “function creep,” where optional systems become de facto mandatory as more services depend on them. Privacy experts note that even decentralised systems, once connected to state databases, can be used for tracking. Petitions against the proposal have gathered hundreds of thousands of signatures. The government insists the scheme will be voluntary, but that assurance feels fragile in a country where passports are already required for basic employment checks.
In fact, net support for digital ID cards fell from 35% in the early summer to -14% at the weekend after Starmer’s announcement, according to polling by More in Common. Some attribute this to a “Reverse Midas Touch” attributed to Starmer as his popularity plummets. [8]
Technocapitalism
What’s at stake is not simply privacy, but the very nature of citizenship. In the analogue age, identity was something you carried in your pocket — a document issued by the state but held by you. In the digital age, identity is something you access through a platform you don’t control. It can be suspended, revoked, or monitored at will. Digital IDs, then, are not just a technological upgrade. They are a political transformation — the fusion of identity and infrastructure, of belonging and permission. They are the skeleton key to a new kind of capitalism, one that profits not from what we buy, but from who we are. Technocapitalism is the latest evolution of capitalism, where the economy now values non-physical assets far more than old school physical goods. After the 2008 financial crisis, as public trust in traditional finance eroded, tech companies emerged as new economic powerhouses. Cloud computing, smart phones and social platforms created new markets. Digital IDs are simply the logical conclusion of the new form of capitalism.
As Britain prepares to roll out its own version, the question facing every democracy is the same: can digital identity empower citizens without turning them into data subjects? Or, as the world drifts deeper into a networked age of surveillance and control, will the promise of safety once again prove too tempting to refuse?
[1] New Digital ID to make life easier for millions – GOV.UK
[2] www3.weforum.org/docs/WEF_Guide_Digital_Identity_Ecosystems_2021.pdf
[3] Identity Cards Act 2006 – Wikipedia
[5] China’s social credit system ‘could interfere in other nations’ sovereignty’ | China | The Guardian
[6] China’s new digital ID system raises surveillance, censorship concerns – The Washington Post
[7] techUK proposes trusted digital IDs to power UK’s £100B digital asset boost | Biometric Update
