Schmidt stressed today that anonymity and pseudonymity will remain possible on the Internet. "I don't have to get a credential if I don't want to," he said. There's no chance that "a centralized database will emerge," and "we need the private sector to lead the implementation of this," he said.
Nothing the government does as voluntary stays voluntary for long, and everything on the Internet eventually gets put in a database somewhere, if it's done by the government you can damned well bet it will be centralized enough that other agencies can get to it pretty much at will.
And a disgruntled employee will eventually make it public similar to WikiLeaks.