Correct. There is nothing "self" or "sovereign" about having your "government name" certified cryptographically by the state.
Oh, you generated your own key material all by yourself, and THEN the government signed it? That's the innovation? Who cares. There is no value.
The -only- reason anyone cares about your identity is because it's mandated to do some checks by the government. Also, to deter fraud, as mandated by your insurance companies and credit card processors.
In both cases, there are legal requirements set out that mandate what exactly you must do. Often it would be the passport, plus second source of identity, plus an address check, plus proof of liveness.
Nobody asked for an open standard. Nobody really cares about identity except for banks/financials corps.
When was the last time you woke up and felt, damn, all I wanna do is identity, identity, identity?