Isn't this just seeing a slippery slope and deciding to build a terrace[1], in that the existence of a digital ID doesn't automatically lead to mandate to carry one—any more than the existence of a physical ID card does?
A physical ID can, depending on the validation process.
Digital ID doesn't have to report your location either, depending on the implementation. It's not like it's a given a digital ID system has to give your location.
An SSH key is a digital ID. Does it report your location when you use it? A GPG key can be a digital ID. Does it report your location when you sign something?
Once everyone is mandated to carry digital ID, then possibilities to track population open up.