See also The Profession by Isaac Asimov [0] and his small story The Feeling of Power [1]. Both are social dramas about societies that went far down the path of ignorance.
What's wrong with verifiable credentials? It's an important thing to have it seems? Your passport or a bank card are verifiable credentials, or at least are designed to be.
It's an ugly and wasteful system set up instead of other, simpler measure that were politically unacceptable at the time, like higher VAT, excise duties on all fossil fuels across all industries without exception, including fuel oil for heating and aviation fuel.
The article starts with a picturesque "Sam Altman holding a knife to Tim Berners-Lee's throat", I woyld wish there be an LLM to generate that, are there any?
[0] http://employees.oneonta.edu/blechmjb/JBpages/m360/Professio...
[1] https://s3.us-west-1.wasabisys.com/luminist/EB/A/Asimov%20-%...
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