Electronic photo ID signed by the state cryptographically
It seems pretty straightforward for the state to issue, at the same time as a physical driver's license or photo ID, a cryptographically signed electronic version containing the same information: name, photograph, height, etc. The DMV can e-mail it to you. It's useful to have an ID you can't easily lose, that you can make a backup of. The state cryptographically signs the document, so the photo or details cannot be altered. An electronic version allows for a high-resolution photograph which may be effective in distinguishing people who look alike. It could even include additional biometric information such as a video demonstrating speech and gait and fingerprints. Biometric information is creepy, and it is important that the state may sign a document without keeping a copy of it.
Electronic versions of birth certificates may be issued the same way.
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