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from yahoo news
http://news.yahoo.com/s/ap/20070909/ap_on_re_us/chipping_america_ii;_ylt=AmtlgvHQdF0jCvBh1vNfJr0DW7oF

It's implanted to access medical records, but it is linked to cancer in animal testing. This is the same type of chip technology that is in your VW key, but unless you put it under your skin, I doubt there is anything to worry about

When the U.S. Food and Drug Administration approved implanting microchips in humans, the manufacturer said it would save lives, letting doctors scan the tiny transponders to access patients' medical records almost instantly. The FDA found "reasonable assurance" the device was safe, and a sub-agency even called it one of 2005's top "innovative technologies."

But neither the company nor the regulators publicly mentioned this: A series of veterinary and toxicology studies, dating to the mid-1990s, stated that chip implants had "induced" malignant tumors in some lab mice and rats.
"The transponders were the cause of the tumors," said Keith Johnson, a retired toxicologic pathologist, explaining in a phone interview the findings of a 1996 study he led at the Dow Chemical Co. in Midland, Mich.


More at the linky
 

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The article says that the mice got cancer more.

But those mice are specilly bred to easiliy get cancer so that it can be studied. A person won't get cancer from having a key in their pocket. Having it under their skin....well that's a notehr story.
 
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