Radio ID Chips May Track Banknotes

News.com reports on the proposed use of RFID chips in Euro currency.

Radio tags the size of a grain of sand could be embedded in the euro note if a reported deal between the European Central Bank (ECB) and Japanese electronics maker Hitachi is signed.

As I've previously stated, currency counterfeiting will continue to be a greater problem as it becomes easier and cheaper for the average person to copy money easily.

To add to the problem, businesses also find it hard to judge a note's authenticity, as current equipment cannot tell between bogus currency and old notes with worn-out security marks. Among the security features in the current euro are threads visible under ultraviolet light.

There are obvious privacy concerns.

"RFID (radio frequency identification) tags also have the ability of recording information such as details of the transactions the paper note has been involved in. It would, therefore, also prevent money-laundering, make it possible to track illegal transactions and even prevent kidnappers demanding unmarked bills," [Frost and Sullivan analyst Prianka] Chopra said.

But the article also discusses how easy it makes counting money.