Under strict police conditions, demonstrators chanted and waved banners along a route from Marble Arch to Whitehall on Saturday afternoon.
The Prime Minister announced in September that a digital ID system would be introduced in 2029 and would be mandatory for people working in the UK as part of a bid to tackle illegal migration.
Former Conservative MP Andrew Bridgen, who was expelled from the Conservative Party in 2023 for comparing Covid-19 vaccines to the Holocaust, walked at the front of the march.
One protester carried an effigy of Sir Keir Starmer.
An advert for the protest on the website of organiser Mass Non-Compliance said “if you accept digital ID now, it may be the last real choice you ever make”.
The Metropolitan Police told demonstrators not to deviate from their pre-planned route, and to stay on the left-hand side of the road.
Plans to roll out digital IDs have already faced criticism.
Conservative former minister Sir David Davis, who campaigned against their introduction during Sir Tony Blair’s Labour government, said: “While digital IDs and ID cards sound like modern and efficient solutions to problems like illegal immigration, such claims are misleading at best.
“The systems involved are profoundly dangerous to the privacy and fundamental freedoms of the British people.”
Tory leader Kemi Badenoch has dismissed the plans as a “gimmick that will do nothing to stop the boats”.
Reform UK leader Nigel Farage has also said he is “firmly opposed”.
The Liberal Democrats have said they would not support mandatory digital ID where people are “forced to turn over their private data just to go about their daily lives”.