http://blog.wired.com/gadgets/2007/02/achi_develops_r.html

Hitachi Develops RFID Powder

Conspiracy-minded types can thank Hitachi for something new to worry 
about -- RFID chips so small you'll never know they're there.Hitachi_rfid

The electronics conglomerate recently showed a prototype of an RFID chip 
measuring a .05 millimeters square and 5 microns thick, about the size 
of a grain of sand. They expect to have 'em on the market in two or 
three years.

The chips are packed with 128 bits of static memory, enough to hold a 
38-digit ID number.

The size make the new chips ideal for embedding in paper, where they 
could verify the legitimacy of currency or event tickets. Implantation 
under the skin would be trivial, allowing you to easily swap info with 
your walls or colon. Beyond that, let your fevered imagination wander.

We, for example, are reminded of the mysterious "Dust" that pervades 
Philip Pullmans "His Dark Materials" novels.

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