That’s not true. I lived there for nearly a decade and you use driving licenses for id and there are other forms for id as well that don’t include the passport.
You need ID to do a lot of stuff just like any other country.
What is not true? A driving license may be a defacto ID, but it is not a dejure, designated national ID card. It's a different system. In the EU countries the ID cards are backed by a more-or-less central civil register.
(as an aside, it would be very funny to me if the they used the driving license for electronic signing of official communication with the authorities like we use it in some countries in the EU).
You need ID to do a lot of stuff just like any other country.