Digital ID, like all technologies, can be helpful and privacy protective or harmful to privacy depending on how it is designed. It is certainly conceivable that digital ID could enhance the verification process and the authentication process, allowing citizens to have access to services.
It is certainly conceivable that digital ID would be better from a privacy perspective than SIN numbers and the antiquated ways we have to identify ourselves currently. It all depends on how the technology would be designed. It is certainly possible that digital ID would lead to the data being available to many players or actors, corporate or governmental, that should not have access to all of this data, but it doesn't have to be designed that way. It could be designed in a way that provides authentication, which is the first part, and then controls correctly who in a department or who in a company has access to what information because they have a legitimate need for it.