I think this starts to not work when you start to include other states that want to do this, other countries, cities, counties, etc.. How many trusted authorities should there be and how do you prevent them from being compromised and exploited to falsely verify people? How do you prevent valid certs from being sold?

Some examples of the type of service you mentioned:

• https://www.realme.govt.nz/
• https://id.me/