Governments need to identify citizens. They currently do this via paper records and extensive digital databases that those tie into. They will in future do this via digital records/tokens but this won’t change much.

Some amount of id verification and surveillance is of course required for a government to function, the question should be more what is allowed and what is not.

Is all data about you "surveillance". When your doctor produces a medical record after your visit, are they "surveilling" you? How about when the railway company stores your travels to bill you later?

I'll assume your answer is no, and I that case surely you must see the value in that medical record being correct.