Technology group Hitachi has developed a radio frequency identification (RFID) chip which is 64 times smaller than those currently on the market.

According to Pink Tentacle, the RFID powder-type chips are five microns thick and could be embedded in currency notes, paper identification documents and a host of other goods.

The technology was made possible through semiconductor miniaturisation applications where beams of electrons were utilised in order to write data on the tiny chips, which can store a serial number in order to act as identification.

Reports suggest that the miniature data storage products can hold an identification number of up to 38 digits and are most likely to be used as an anti-forgery device when they emerge onto the market within the next two to three years.

Hitachi already manufactures and sells the miniature Mu-chip, which the company claims is the smallest RFID circuit in the world and has the capability to trace and monitor goods as well as enhance security of goods in transit.

RFID systems, which typically comprise a tag with a microchip and antenna plus a reader emitting electromagnetic waves, require an integrated chip in order to modulate radio waves and enable them to be turned into digital data.