A company looking to embed chips in the hands of employees so they can use snack kiosks, log into computers and gain entry into company facilities says it will use encryption to protect data and that GPS data won't be collected.

"There is no GPS tracking ability to it. It is really the same thing as the chip that is in your credit card," the BBC reported Three Square Market Vice President of International Development Tony Danna as saying. 

Following a three-year-old initiative in Sweden where bio-hackers have installed the microchips in volunteers, the Wisconsin-based snack vendor will embed $300 RFID chips in the hands of roughly 50 of its 85 home office employees who volunteered. Executives believe the initiative reflects the future. 

"The international market place is wide open and we believe that the future trajectory of total market share is going to be driven by whoever captures this arena first," Mr McMullan said.

Company CEO Todd Westby told CNBC that "The chances of this being hacked into is literally nil to none" since the rice grain-sized chip is a passive device.