Brazil's data protection authority has directed World, formerly Worldcoin, to cease offering cryptocurrency rewards for biometric data collection from its citizens. This directive follows an investigation launched in November 2024, shortly after the World ID project debuted.
What is World Network and Its Biometric Data Collection Model?
World Network, previously known as Worldcoin, is a project co-founded by Sam Altman, CEO of OpenAI, and developed by Tools for Humanity. The initiative aims to establish a universal digital identity and financial network using iris biometrics for individual verification. The process involves scanning irises using a device called the Orb, which is designed to create a secure, verifiable digital identity for users. World Network was launched with the promise of offering crypto rewards in exchange for biometric data, such as iris scans.
The Issue of Consent: Brazil’s Data Protection Laws
Under Brazil’s strict data protection laws, akin to the EU's GDPR, consent for processing sensitive personal data must be free, informed, unequivocal, and explicitly given for specific purposes. The ANPD believes that offering crypto payouts as compensation for biometric data may compromise the validity of the consent obtained. The agency concerns focus on the potential undue influence of financial incentives on individuals' decisions, particularly those in vulnerable situations, leading to consent that isn’t completely voluntary or informed.
Tools for Humanity Responds to the Allegations
In response to Brazil’s order, Tools for Humanity has reportedly denied any wrongdoing. The company has reiterated its commitment to adhering to Brazilian data protection laws while criticizing what it describes as misinformation about the project circulating on social media.
The measures taken by Brazil highlight the importance of compliance with data protection laws in a world increasingly dominated by technology.
