And how are you going to distribute the coins to everyone?
Electronic National ID scheme - provided by the government, but useable by anyone.
Are you going to go through all of them manually to make sure the person who is asking the coins is the person he claims to be? Can't someone just enter ID's into your web page and collect coins non-stop? Just out of curiosity, how do you see it happening?
Each Icelander can verify himself through the scheme only once.