Comment by agnishom
The main concern here is that it will create a narrow bridge (i.e, the digital ID system) between people and various services and opportunities which will make it an easy target for people who wish to wield power against someone.
Perhaps your digital ID is needed to open a bank account, get a phone number, sign up for insurance, etc. Now, suppose some fascist government comes into power. They could start cancelling the digital ID's of people or groups they do not like or are bigotted against. These people start losing access to critical infrastructure.
Now, this could already happen, even with imperfect paper IDs, of course. But by making everything digital, we are reducing societal resilience towards such kind of hostility.
We already have exactly this right now, without digital ids, it's not even theoretical. The government blocks plenty of residents from aspects of society (eg can't work based on visa rules, can't access public/health services at all without legal residency). Currently that's enforced by random members of e.g. medical staff looking at your skin colour to decide whether to ask to check your physical paperwork before they'll look at your weird looking mole. Governments enforce plenty of paperwork checks & blocks today. I think a digital id strictly improves this scenario.