Lots of countries manage just fine with ID cards. No issue over theft or stolen identity; it is just dealt with.
Israel is like Chile - need your ID card (or at least the number) for everything; buying fuel at a self service petrol station, buying something expensive on a credit card, opening a bank account. It is a credit card sized thing that you just whip out when required. No-one gives two hoots about carrying them. It provides security that if something is wrong you find out about it much quicker than you do without a card.
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