Chips in Driver's Licenses

Although no state has yet succeeded in creating a driver's license beyond the traditional plastic tool, efforts are underway on several levels to move into "smart licenses" - licenses that contain microchips with information on the individual to which the license is issued.

Virginia state lawmakers are discussing legislation that would allow the microchips, and two Virginia U.S. representatives have introduced legislation nationally that would create a national pilot program tested in six states.

Opposition has come from privacy groups, who claim criminals may be able to electronically "pickpocket" the information, and from DMV, which is concerned about the high costs of the technology for producing and reading the cards. National security experts believe the cards could become a de facto national identity card that could help fight terrorism.

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 9, 11/04