I think privacy abuse can be largely prevented if a hard line is drawn saying that digital ids must only be used by the government for government services, such as voting, taxes, immigration, welfare, etc.
If any private parties like banks, social media, or online stores are allowed to check your digital id, they are going to be a privacy disaster.
Yeah the situation with banks is a whole other problem. Banks have basically become an arm of the government, but without the protection of due process.
Financial privacy is a pipe dream at this point, so I'd prefer basic bank accounts be run directly by the government. At least that way, they can more easily be held accountable for their actions.
Enforcement of the state's desires by private corporations leads to all kinds of evil.
If any private parties like banks, social media, or online stores are allowed to check your digital id, they are going to be a privacy disaster.