It is not necessary for the state to manage electronic identities because sub-contractors may be better suited for the overarching job.
The state can always keep a supervising role in the validation of identity, while the practical/logistic aspects are left to sub-contractors. For example, the US government already has social security under the U. Social Security Administration, and it is one of the largest forms of identification used in the country.
Sub-contractors can request something like this as validation before they enroll people in their programs that would manage electronic identities.
The management of electronic identities by private companies has benefits that outweigh management by the state, and private companies can ensure the correctness of data with minimal assistance from the state.