Brazil’s data protection authority has ordered the company behind the biometric technology for the World ID project to stop offering crypto or financial compensation for collecting biometric data from its citizens.
On January 24, the National Data Protection Authority (ANPD) instructed Tools for Humanity (TFH), the company behind the World Network (formerly Worldcoin), to halt its services to Brazilians starting January 25. This move followed an investigation that began in November after World ID launched in Brazil.
Concerns Over Valid Consent
The ANPD’s enforcement division reported that offering cryptocurrency as compensation could undermine the validity of user consent for collecting sensitive biometric data. World Network, co-founded in 2019 by OpenAI CEO Sam Altman, uses iris scans—collected via a futuristic “orb”—as part of its goal to create a universal digital identity and financial network.
Brazilian law requires that consent for processing sensitive personal data be free, informed, unequivocal, and granted for specific purposes. The ANPD raised concerns that offering financial incentives could influence individuals’ decisions, particularly those in vulnerable situations. The regulator also highlighted the irreversible nature of biometric data collection and the inability to delete the collected data once it is provided.
This is not the first time World ID has faced scrutiny. In December, Germany’s data protection authority issued corrective measures regarding the handling of biometric data, ordering World Network to comply with the EU’s General Data Protection Regulations (GDPR).
Meanwhile, the World ID project’s native token, WLF, has seen a significant decline. The token, launched in July 2023 to power the network, has fallen more than 8% in the past 24 hours, dipping below $2 at the time of writing. The token’s value has dropped by 83% from its all-time high of $11.74 in March 2023, according to CoinGecko.
Author’s Opinion
Brazil’s decision to ban Worldcoin’s crypto-based incentive for biometric data collection raises serious ethical questions about the intersection of data privacy and financial incentives. While the promise of a universal digital identity is appealing, the use of financial rewards to collect sensitive biometric data could exploit vulnerable populations, undermining the informed consent process. It’s clear that Worldcoin’s model needs to be reevaluated to ensure that it doesn’t compromise users’ autonomy or privacy in the pursuit of technological progress.
