There's been a lot of talk recently on the Internet and in the blogs about RFID chips supposedly being hidden in US$20 bills.

Turns out that's just another urban legend.

The story got started when two people — apparently with money to burn — put some of the new U.S. twenty dollar bills into the microwave oven. They say the right eye of Andrew Jackson exploded. They then deduced that RFID chips had been inserted into the new bills.

AIM Global debunks this myth at its website.

To test the theory, AIM conducted its own experiment. According to the press release AIM issued, not only did the $20 bills NOT explode, they barely got warm when put in the microwave.

As a second experiment, AIM subsequently put an RFID laundry tracking tag into the microwave alongside the twenty, and the tag did indeed explode. But old Andy Jackson still had his right eye. Intact. See below:

Radio Frequency Identification (RFID) tags are tiny transponders that emit radio signals. The signals contain data about whatever it is that the RFID tag is supposed to track.

This tracking ability — and the fact that RFID tags are being made tinier and tinier and therefore may become harder for the naked eye to detect in use — are two factors leading to some very valid privacy concerns.

However, as you might imagine, those who let their imaginations go unchecked are seeing government and business conspiracies around every corner. Urban legends are popping up regularly.

Unfortunately, these urban legends are distracting from dealing with the very real privacy concerns that exist.

The conspiracy theorists will continue to have a field day with RFID until the public becomes (a) more knowledgeable about RFID, and (b) more comfortable with it.

For that reason, education about RFID is very important. And most likely some basic laws and regulations protecting the individual's right to privacy will need to be enacted before the public reaches a comfort level with this technology.

This post is adapted from a post on the RFID Weblog. Visit the RFID Weblog to read more about uses for this fascinating technology.