> No, uploading identity documents is never a safe process.
You should probably stop pretending you understand verifiable credentials then.
Because if you did, you'd understand that they don't need to involve uploading identity documents anywhere.
The idea is to defer to service providers such as banks that have already performed such verification, often physically. And if you want to argue that banks should stop verifying who people are when they open accounts... well that's going to be an interesting conversation.
Without doxxing myself too much, I'm going to say that I know intimately the details of a project within Australia to build a standards-based non-government VC system that won't touch a single piece of ID at any stage, as an additional capability on a commercial identity system that's already active and in use.