Wrong. You don't have to give your private keys to anybody to get a
"digital ID" (a marketing term for what is technically an X.509
certificate). You only send your *public* key to the Certification
Authority (the entity from who you want an X.509 certificate to certify
your identity), and this CA then delivers to you a certificate, valid
for a certain duration (generaly 1 year).
The CA doesn't have to be a government agency, most of them are private
companies. Anybody can become a CA. In fact, you can even become your
own CA as an individual, and produce your own X.509 certificates
(that's what I do). But you can't force other users to trust your CA,
and if there's no trust, there's no security.