In February this year, Sir Tony Blair and Lord William Hague released a report aimed at tackling the UK's productivity and innovation crisis. But they inadvertently dredged up a discussion on ID cards that few were ready to have, serving to underline once again the public's distrust toward government-controlled schemes.

People in the UK probably don't realise how many government IDs they already have, including tax returns, benefits, council payments and driving licences. But this doesn't mean the UK is ready for a formal digital identity card. Maybe it is OK that these various forms of ID remain disjointed, even if it is neither convenient nor efficient. The key issue is trust, and the public have to believe there is no overreach when they login to a service.

One way to build trust is to enhance security by putting in place a long-term plan that would remove the need for passwords. One of the simplest ways for a cyber criminal to hack...