Or, you know, it's hard to innovate when you're in organizational crisis mode trying to prefund 50 years of retirement while not being allowed to market-rate your core service...
If the political system stops public sector organisations innovating, they won't innovate. See, for example, BT in the UK, who were looking into investing in fibre optic rollout in the 80s and 90s until Thatcher snuffed that idea out and we're only now starting to get fibre to the premises rolled out in significant numbers.
https://www.techradar.com/uk/news/world-of-tech/how-the-uk-l...
That's because it has been a target of right-wing attack for decades starting with the republican-led 2006 bill that effectively bankrupted it overnight by requiring a massive 50 years of health benefits to be funded.[1]
So when you have a service (not a business) that is constantly being picked apart and hamstrung from completing its most basic functions, you can't possibly blame them for not innovating. Well you can, but it is not in good faith.
https://www.politifact.com/factchecks/2020/apr/15/afl-cio/wi...
But then we also have a notary public system, which is already in the business of verifying identification for official purposes. That could do it too.