Insofar as it is proposed as a monitoring method for persons on remand or subject to supervisory orders e.g. curfews this is really just a question of technique as this principle is generally acceptable in most jurisdictions.
some countries (I believe in the UK and the USA) accept electronic tagging of both the guilty (prisoners on release temporary or early from prison, or for a period of supervision after release) and the innocent (persons at liberty on bail pending trial). This itself developed from an older method of keeping tabs on people in those categories, that of requiring them to report to their local police station at specified intervals.
Insofar as it is proposed as a way of keeping order on persons simply in prisons, there is no basis in logic for it imo - i fail to see what would be achieved by electric tags on every prison...in a well run prison it is generally believed necessary to know where each prisoner is
I was originally going to post further along the lines of 'anyone who thinks the rest of us are next is a scaremongerer...I mean come on...who's going to force you to get some kind of microchip which tracks your activities and location etc...your employer or someone'....and then I thought...ummmmmm...yup...your employer...governments couldn't because it would be serious breach of human rights...but if you sign up to it 'voluntarily' i.e. because you have to get/keep your job...and that is probably where the threat is - private sector as opposed to public.