In Web3, asking whether digital identity will matter is basically a closed question at this point. Everyone knows it's going to be crucial.

But here's where things get thorny—can these identity systems actually survive in the real world where regulators are watching? That's the trillion-dollar question.

When you're talking financial apps, stablecoins, and neobanks operating across borders, the regulatory friction becomes real fast. The infrastructure exists, the tech works, but does it mesh with what governments actually demand? That's what's keeping builders up at night.