In the real world, we have many businesses which will look at ones gov't issued ID, most bars for instance. We have other businesses which will record the information off ones ID, most dispensaries for instance. I will go into the first. I will not go into the second. Verifying my eligibility is one thing. Recording my data for later use is a very different thing. I can tell the difference in the real world because I can see the process. Online, it is impossible to tell. Providers can build a reputation for privacy, think Proton.
You say we are looking for solutions. There are better solutions, including privacy preserving solutions, which can work. We just don’t have any of those yet.