Why identity is important to a country?

It is very important, because if someone steals you identity and assumes it, you have to get your identity back and that is a difficult task.

Tasks such as closing affected bank and credit card accounts, contacting a credit bureau to report the fraud. contacting the Police, complain to the FTC's Identity Theft Hotline, are just a few of the tasks involved.

With the loss of your identity you have lost your "good" name, and it takes awhile to reestablish your good identity and repair your damaged credit.