You might be able to get more trust by the government assigning a third party to audit the systems to make sure they are working as advertised, and not being abused, but you would still get people being paranoid that either the third party could be corrupted to pretend that things are okay, or that a future government would just fire them and have the system changed to track everyone anyway.
No matter what you do, you will never convince a subset of people that a system that can potentially be used to track everyone won't be abused in that way. Unfortunately, those people are most likely correct. This is why we can't have nice things :(
For the record, I thing it would be great to be able to have a trusted government issued digital ID for some purposes. I especially think it would be great to have an officially issued digital ID that could be used to sign electronic documents. My partner and I moved home recently, and it was not easy signing and exchanging legal documents electronically.