No, it doesn’t.
I’ve seen this system used a lot in retirement homes. It filters out those people who can read and copy and thus orientate themselves, from those who need help finding their way alone. It basically keeps people from wondering off to where they get lost, while not restraining others. And it’s a lot less hassle than badge systems.
Good point. I can see what you mean in the instance of a nursing or retirement home. I had a friend who was in a nursing home and they gave me the code, as a visitor, but I don’t know if the residents knew the code.