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Early adopters in Mexico lend their eyes to global biometric project
(www.reuters.com)
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Is this a NY only thing? I've never once had to do an iris scan for anything, and have a passport, DL, and everything (US citizen). I also haven't heard of anyone traveling here needing to it, though maybe it just never came up in conversation.
Also, as for replacing passports, international travel still requires one but for domestic travel, you can get a regular ID/DL in many states that acts as an ID at airports without the need of a passport.