Regulators Cast Doubt on Data Privacy in Worldcoin
Only a few weeks after its launch on 24th July, the Global cryptocurrency project Digital ID Worldcoin initiative, founded by OpenAI CEO Sam Altman (the creator of the popular AI-powered chatbot ChatGPT), has caught the attention of privacy regulators worldwide, according to a report by ABC. The utmost form of identification idea of the innovative startup Worldcoin, supported by its partner company Tools for Humanity, aims to provide users with the utmost form of identification that is impossible to steal or replicate. To achieve this, Worldcoin has created the "World ID," an analog identifier in the form of specialised spheres that scan the subscriber's iris membranes, pupil membranes, and coloured eye segments. According to the developers of Worldcoin, this identification technology will substantially bolster security for registration on various online services, replacing standard passwords and user profiles.
The security and confidentiality of any website on the Internet are not flawless and can be breached, as evidenced by numerous breaches of online resources and the leakage of subscribers' personal data. The issue of outdated passwords can be addressed through personalised identification using the World ID.
Although primarily serving as an identifier, the project has its own cryptocurrency, the Worldcoin token, which incentivises people to register. As part of the project's launch campaign, initial users received cryptocurrency worth $50 to $60 upon registration, depending on the country where the project was launched. This campaign sparked fervour in Kenya, where the average income is around $170 per person. Thousands of Kenyans in Nairobi flocked to the Worldcoin registration centre, where their iris membranes were scanned using the spheres in exchange for $50. Many of those in line admitted that they didn't even know the purpose of eye scanning and where these personal data would be used—they simply came to get the "free money." Subsequently, the Kenyan government suspended the Worldcoin registration process pending clarification of the confidentiality of collected, stored, and utilised biometric data.
Worldcoin developers assert that biometric data is used to create a unique form of identification. However, privacy experts in many countries fear that this data could be used for other purposes, including personalised marketing. Following Kenya's lead, the United Kingdom, France, and Germany have joined the investigation into Worldcoin's activities regarding data security measures and guarding against unauthorised access. Specifically, French regulators noted that the legality of Worldcoin's data collection and storage methods "appear questionable." Professor Pete Houston from Northumbria University's Department of International Development highlighted that the leakage of biometric data in third-world countries, where Worldcoin operates, could pose a danger to people's lives.