This does not sound good. US government making this a top priority to force companies to give up encrypted data?!?! Did they not learn from the Apple FBI incident? The transfer of data into the hands of government is not a wise idea. I can give you dozens of reasons not to hand this over to government. They cannot even fix the social issues, health care issues, and tax issues that we face. Government sites are terrible if you had to visit to access their services. I recently had to go to the IRS site to get documents and you can get lost in their old outdated poor sorry looking websites. It is sad that we can go to instagram and Facebook and do something with a few clicks or engage something online from private companies, but going to anything having to do with the government, they have a lot of work to do to fix their infrastructure, greed, selfishness, and corruption. I think the last thing they need to be worried about is having that information in their hands and more compromises, attacks, and vulnerabilities if they hold possession of it. Look at all the CIA and FBI forensic IT tools and source codes that have already been published on the web.
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Decentralization is the key to avoiding panopticon. But authority will make excuses for centralizing all private information and the uneducated will believe because they don't know better. Equifax will happen many more times until people figure out that PII should be in the hands of each individual using devices like a Trezor wallet. The technology already exists and is being used (that underlying bitcoin and other altcoins).
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