From remarks by Eric Schmidt to audience at Cambridge University:

“We could see virtual kidnappings – ransoming your ID for real money,” Schmidt said. “Rather than keeping captives in the jungle, groups like Farc [in Colombia] may prefer a virtual hostage. That’s how important our online ID is.”

“But the future will be much more disruptive to terrorists than everyone else. I can’t see them operating out of caves in Tora Bora” – as al-Qaida did after the US invasion of Afghanistan in 2001. […] Osama bin Laden’s compound in Abbottabad reportedly raised suspicions because it didn’t have any internet connection.”

“Our online identity will become such a powerful element. Laws to protect anonymity – we may even see rise in black market where we can buy pre-made or real identities, with all their shopping and background all completely ‘real’ – verifiable online, that is. […] Both drug smugglers trying to evade police and political activists looking to hide from repressive regimes would find those useful, he said: “you’ll be able to buy an identity with fake friends and a history of purchases.”