This paper discusses the proposal to implement a national identification (ID) system in the Philippines. Several proposals have been filed in the Senate and House of Representatives, and President Gloria Macapagal-Arroyo signed Executive Order 420, requiring government agencies to harmonize and streamline their identification systems. The purpose is to curb red tape in public transactions and attain efficiency in government operations. However, the proposal is contentious, with civil libertarians, human rights advocates, and militant groups claiming that an ID system violates a citizen’s right to privacy and could be used by the government to keep track of personal activities. This paper discusses the changing rationale for an ID system, examines policy issues and problems in laying the groundwork for an ID system, provides a brief account of the United States’ experience, and argues that the cost, policy, and legal environment must be adequately studied to protect citizens.