You usually don't want to carry a passport with you at all times. In some European countries (e.g., the Nordics), you have your ID, driver’s license, firearm license, etc., all in a government app that can be verified with an app used by officials. You can also sign and authenticate all paperwork with the same system
I use my passport to verify my right to work in the US during the first week of my job, and then I don't bring it any other time. So unless you're changing jobs very frequently it shouldn't be necessary to carry all the time. A bigger issue would be that many people do not have passports.
I would trust the Nordic governments to write an app to put on my phone and not slurp up all my data and spy on me with it. I can't say the same about the British government