Or perhaps it might be workable once quantum encryption is in place. The ultimate goal of cryptography is to create a cipher that can't be cracked even with the key. This is in fact possible in theory. A digital licence would solve a lot of problems, it's true...but ATM it would cause more than it would solve.
Few people will adopt it unless its security can be
guaranteed - and given the appalling track record of governments (
any government), it's no wonder we don't trust them. Certainly I don't.
And I've just had a thought: what about the non-drivers, of whom I am one? One reason I don't drive is that the roads are dangerous enough.