The State of Illinois has been a big proponent of digital certificates for citizens and has been issuing them for some time. People can use these to authenticate to eGovernment applications. Of course, you don't want to force people to use a digital certificate when they renew their driver's license, but there are somethings that require strong authentication and the lack of good ways to accomplish it hampers digital government.
According to this story from Government Technology, they just issued their 100,000th digital certificate. They have also cross-certified with the Federal Bridge Certification Authority (FBCA), so these state-issued digital IDs can also be used for authentication to federal government applications.