Too much Government?

A recent article discusses the new measures Obama plans to take to, "create a trusted-identity system to boost consumer security in cyberspace".  Based on the feedback from this news, departments have said that this could potentially be very beneficial for the American private sector.  These measures would make it much more difficult for individuals to have their identities stolen.  The only drawback mentioned was that if the system becomes compromised, people could lose much more than their driver's license or credit card.  Rotenberg stated that it would be like, "losing your whole wallet".  I consider myself to be pretty neutral towards the input in which the government has in our online privacy.  With more information on this idea I think I would support a measure that could reduce the amount of identity theft.  How does anybody else feel about a measure such as this?  I feel like this will receive very mixed reactions throughout the private sector.  I personally would back the government obtaining our personal information in this way because I feel that they will have access to our personal information one way or another.  I would rather them obtain our personal data in a way that would be beneficial towards us.