This is obviously more secure than taking a photo of an analog ID as an "online identity proof" (a somewhat absurd idea if you think about it, yet it's the state of the art in most countries today). But if done correctly (and I do realize that this is a very big if), it even be more privacy-preserving too:

For example, when trying to prove your age to a website, the only thing that site really should have to learn is the fact whether you were born more or less than a certain number of days ago. Not your date of birth, not your name, and certainly not a picture of your face or any other biometric data.

Digital ID can do that (e.g. by asking the secure chip "Is the accountholder born before $date? If so, please sign this challenge using a key shared among all ID cards" or something equivalent). Analog ID requires you to reveal strictly more information than that to a service provider and hope for the best.

[1] Technically a supreme court opinion