David Edwards
Tools for Humanity (TFH), the firm behind the biometrics-driven World ID initiative, has been ordered by Brazil’s National Data Protection Authority (ANPD) to cease providing bitcoin or other financial incentives in return for gathering biometric data from its inhabitants. The order, which was issued on January 24, forbids World Network, formerly known as Worldcoin, from conducting business in Brazil as of January 25.
The decision is the result of an examination that was started in November 2024, after the World ID initiative was introduced in the nation. The ANPD came to the conclusion that, in accordance with Brazilian data protection regulations, offering financial incentives for sensitive biometric data undermines the legitimacy of user consent.
Eye-Scanning Technology Under Scrutiny World Network, which was co-founded in 2019 by OpenAI CEO Sam Altman, uses its future biometric device, the Orb, to scan users’ irises in order to create a global digital identity and financial network. The concept, which was created by Tools for Humanity, based in Berlin and San Francisco, provides a safe way to verify identification while compensating with native tokens.
However, the General Data Protection Law (LGPD) of Brazil stipulates that permission to process sensitive personal data must be:
Independent and unaffected by outside forces,
knowledgeable about all possible ramifications, clear, and directly related to the intended goal.
The ANPD expressed worries that using cryptocurrencies as a reward could take advantage of people who are already struggling financially. It also highlighted the considerable hazards associated with handling such sensitive data by pointing out that biometric data collection is irreversible and that data cannot be deleted once it has been collected.
Worldwide Privacy Issues with Worldcoin
The move by the Brazilian authority comes after comparable measures in other jurisdictions. The World ID project was subject to remedial actions in December by Germany’s data protection authority for noncompliance with the General Data Protection Regulations (GDPR) of the European Union.
The international outcry demonstrates the increased scrutiny of biometric data collecting, with privacy advocates raising concerns about the morality and legality of initiatives such as Worldcoin.
