Brazil Bans Worldcoin Amid Data Privacy Concerns
Brazil’s National Data Protection Authority (ANPD) has ordered World Network, the name behind the controversial iris-scanning project known as Worldcoin, to suspend activities in this country. Effective from January 25. This decisive move prohibits the organization from providing cryptocurrency or financial incentives in exchange for biometric data collecting.
The suspension followed a detailed investigation that began in November, shortly after World Network launched its World ID project in Brazil. The ANPD’s enforcement brand expressed serious concerns regarding the legality and ethics of using cryptocurrency payments to incentivize residents to disclose sensitive biometric data.
Consent and Data Sensitivity Concerns
The ANPD’s decision revolves around the issue of consent. According to Brazilian legislation, consent to treat sensitive personal data must be given freely and without any influence:
Informed: Fully comprehending the consequences and use of the data.
Unequivocal: Clearly stated with no space for ambiguity.
Purpose-Specific: Approved for only the purposes specified during collection.
The watchdog argued that providing financial incentives could undermine the legitimacy of user consent, particularly among vulnerable populations in the form of cryptocurrency. Furthermore, the irreversible nature of biometric data collecting and the inability to erase such data after submission prompted additional concerns.
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Global Scrutiny of World Network and Worldcoin
World Network, co-founded by OpenAI CEO Sam Altman in 2019, intends to create a global digital identity system and financial network. Tools for Humanity in San Francisco and Berlin developed an advanced technology that uses a futuristic ‘orb’ to scan users’ irises. Even though the project offers digital identity solutions, its practices have drawn global regulatory scrutiny.
In December 2024, Germany’s data protection authorities ordered World Network to take corrective action to comply with the European Union’s General Data Protection Regulation (GDPR). Similar concerns appeared regarding the handling of biometric data and the lack of suitable safeguards.
The debate has further influenced the value of the native Worldcoin token (WLF). According to the data from CoinGecko, it has fallen more than 8% in the last 24 hours, dropping below $2. Since its all-time high of $11.74 in March 2023, the token has been experiencing a drastic downtrend and has dropped by 83% till now.
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The ANPD’s ruling highlights the growing contradiction between adopting innovation and ensuring data protection. With biometric data collecting becoming a focus of global regulation, businesses like World Network must address ethical and legal concerns if they want to recover public trust and emerge as a credible resource.
Brazil’s move could establish a precedent for other countries dealing with similar initiatives. For the time being, World Network faces severe challenges in keeping up its aim of developing a universal digital identity system that respects privacy rights and provides a secured data protection framework. Despite the increasing concerns over biometrics and data privacy, it is evident that the digital identity is emerging bigger than ever.
