Read business books and news from the 80's - 90's, and they almost never mention China - it's all Germany, UK, Japan, USA. The stats tell the same story - China spent half a century going nowhere fast.
After liberalizing their economy, China spent the 90's quietly growing, and only started making real waves in the news around 2000.
All this to say that economic authoritarianism has never worked and there's no reason to suppose that the social kind is going to fare any better for anyone either.
1) private - anonymous (don't know who is requesting access) and unlinkable (don't know if the same user makes repeated requests or is the same user on other services).
2) widely available and extremely easy to register and integrate.
The current situation is that it's not easy, or private, or cheap to integrate. And the measures they say they will accept are trivially easy to bypass - so what's the point?
I worked in a startup that satisfied point 1 back in 2015. The widely available bit didn't come off though when we ran out of runway.
This whole concept runs into similar issues as digital voting systems. You don't need to just be anonymous, but it must be verifiably and obviously so — even to a lay person (read your grandma with dementia who has never touched a computer in her life). It must be impossible to make changes to the system that remove these properties without users immediately notice.
The only reason why paper identification has close to anonymous properties is the fallibility of human memory. You won't make a computer with those properties.
Voting is very different - you do need to be able to demonstrate the fairness of the process verifiably to everyone - not just crypto nerds. Age verification - well, some people might get around it, but if it generally seems to work that is good enough.
[1] https://itdaily.com/news/security/eu-temporary-app-age-verif...
[2] https://openid.net/specs/openid-4-verifiable-presentations-1...