alt Hacker NewsAlready exists as biometric passport or ID card in several countries. The problem is things like authenticating online to submit your tax form. App-as-2FA is kind of the standard for example to log in to your online bank portal, though for government services the threat model and privacy implications are different.
If you have a FIDO device on your (physical) keyring or a keyboard with a smart card reader or some kind of NFC transceiver connected to your PC, the problem is technically solved - just not practically.
Note that phones also have NFC readers. Instead of requiring everyone to have a locked-down phone, they could offer day you use said phone to read the chip or use any other (USB) reader you like. I believe there's a German government app that already does this, Ausweisapp2 iirc. As someone with a different nationality who lives in Germany, I don't know more than that