If you lost your passport while you are traveling; you will not be allowed to leave until your embassy issues a temporary travel document that allows you to travel. This will delay your travel plane; in case of business travel you might miss important meeting with an important international partner.
If we have a digital passport can be added to your handheld device [Tablets, Smart Phones, PDAs,…etc.], we would travel and finish our jobs and back home and issue a new passport. Similar to adding your credit cards, debit cards to Wallet App (Apple Cash) in iPhone. The same thing can be applied to National Identity, Driver License, Birth Certificates, Electronic Medical Record,…etc.