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Brazil’s National Data Protection Authority (ANPD) has stated that Sam Altman’s free crypto for iris scans project interferes with Brazilians’ ability to allow their biometric data to be processed and has banned the project in the country.
According to an official government notification, the company behind the World ID project, Tools for Humanity (TFH), should immediately cease offering free crypto for iris scans or other financial incentives for collecting biometric data from its citizens. The government’s directive occurred on January 25 following an investigation that started last November after World ID launched in Brazil.
Fear of Potential Interference with Free Expression of Will
The Tools for Humanity is a project run by OpenAI CEO Sam Altman that aims to use iris biometrics to create a universal digital identity and financial network using its controversial iris scanning technology. Based in Berlin and San Francisco, the company has had its effort to create a global identity system meeting with suspicion in many jurisdictions, as governments cannot tell how they will use the biometrics, demanding more transparency in the area.
The Brazilian government is displeased with World ID and its crypto for iris scans project, which offers financial compensation to people who give their biometric data. According to the government, there was a high potential for interference in people’s expression of their free will. Moreover, the authorities expressed concerns about how the organization processes the data it collects and called for greater transparency in the data processing framework.
Response from Tools for Humanity
The World ID Tool for Humanity denounced the allegations against the organization, stating they were committed to adhering to the Brazilian Legal framework. The company lashed out at people it claimed were spreading incorrect information about the free crypto for iris scans project on social media platforms.
According to the firm, they plan to approach the Brazilian Data protection agency to explain the significance of their project. Brazil is not the first country where the project has encountered legal hurdles, as it has been rejected in Spain, Kenya, and Portugal, with the governments highlighting similar fears.
Accompanying Free Crypto Incentive Could Influence Decision-Making
OpenAI CEO Sam Altman founded the World ID Network in 2019 to collect iris biometrics to develop a universal digital identity and financial network. The scanned biometrics of people’s irises will be kept and used for a futuristic “orb.” Under the law in Brazil, practitioners are expected to seek the consent of those involved before they can collect and process sensitive personal information and clearly explain the explicit reason for collecting the said data. ANDP fears the accompanying financial incentive would potentially influence people’s decision-making, especially those financially vulnerable.
In a related incident, Germany, through its data protection authority, BayLDA, issued a statement in December 2024 containing corrective measures regarding handling biometric data for the digital identity project. The German government stated it was implementing tough measures that complied with the European Union’s General Data Protection Regulations that the World ID project would have to comply with if it intended to operate on German soil.
Conclusion
The decision by Brazil’s ANDP to ban the free crypto for iris scans project highlights the increasing scrutiny worldwide regarding ethical practices surrounding the use of biometric data and the place of financial rewards such as those that have consistently featured around the World ID project by Sam Altman. Following the news of the ban, the price of WLF, the native token of the project, lost at least 8% of its value over 24 hours to trade below $2.
Frequently Asked Questions (FAQs)
Why are governments concerned about the Worldcoin iris scan?
The Worldcoin orb takes a picture of the iris and stores it on the blockchain as a unique code. Critics argue that even though the data is stored as anonymous iris data, privacy issues remain unaddressed, and the data could be used to identify individuals in the future without their consent.
What is the purpose of the scan?
According to Worldcoin, the scan is intended to prevent fraud and ensure that only a real person can create an account and receive Worldcoin cryptocurrency.
Is Worldcoin legal in my country?
The use of WLF is banned in several countries as the governments in those jurisdictions have raised concerns about the company’s operations.
