ID cards could be fitted with chip and pin technology to help combat identity fraud.
The head of the Government agency tasked with producing the cards said there were no “technical obstacles” to adding chips to the cards and handing out pin numbers.
James Hall, chief executive of the Identity and Passport Service said adding chips might allow the cards to be used in ATM machines in the future.
Officials are also looking at chip and pin as a possible way to help combat online fraud and help protect internet shoppers.
It also emerged the Home Office has issued half as many ID cards for foreign nationals in the first four months than expected.
When the card was launched in late November ministers predicted that between 40,000 and 50,000 non-EU nationals would have cards by the end of last month. But by the end of last week 22,500 cards had been issued. Mr Hall said they had encountered “the odd wrinkle” in the system but overall it had worked “pretty well”.
A spokesman for the UK Border Agency (UKBA) said 42,000 foreign nationals had been through the enrolment process and had their biometric details taken.