> If your digital ID is controlled centrally by the government (the guys that are watching most things you do already), and you need your digital ID to do most commercial interactions (banking, buying things, travel, etc), it means the government can revoke your ability to do any of those commercial interactions (or even other things that aren't strictly commercial, think "travel papers" for driving out of state).

The government can already do this today in the US, they can put your ID on a fly denylist, your passport on a "always go to secondary screening list" (ask anyone who's ever been to Iran on vacation and then decided to travel to the US) and your license plate on a wanted list.