Your talking about "identity theft" as if it's an unquestionable concept demonstrates
precisely why there is opposition to strengthening the technicals of identification. Every bit that makes identification stronger is yet another excuse for businesses to assert that it is infallible. Even currently, rather than banks simply admitting they were defrauded and thanking/compensating the innocent bystanders for helping them set things right, they keep pushing this "identity theft" narrative to make it seem like the unlucky victims of bank's incompetence have some sort of intrinsic involvement!
It's understandable how it got this way, as from inside the system's paradigm it does look like an "identity was stolen". But the map is not the territory - despite businesses wishing that it were because they can only operate in terms of the map. We are not subjects of the government nor of corporations - free people must resist being cataloged and controlled by database rows that seek to override our actual existence.
Furthermore in regards to the US, it's basically a foregone conclusion that any government-mandated ID system will not include effective restrictions that keep corporations from hooking on to build invasive tracking. Let's hold them to reigning in the ongoing widespread abuse of license plates, driver's license numbers, etc before we go advocating for even more identifying requirements on individuals in this age of surveillance.