Brazil’s National Data Protection Authority (ANDP) has reaffirmed its decision to restrict cryptocurrency compensation linked to the World ID project, citing significant concerns regarding user privacy. This decision comes after a petition from Tools For Humanity, the developer behind World ID, was rejected by the authority.
According to a March 25 announcement from the ANDP, the organization will continue its suspension of financial rewards—whether in cryptocurrency (specifically Worldcoin – WLD) or other formats—for users who have provided biometric data through iris scans.
Tools For Humanity is now facing a hefty daily fine of 50,000 Brazilian reais (approximately $8,800) should it resume its data collection practices. Efforts to reach the company for a comment were unsuccessful at the time of publication.
World ID verification in Brazil was short-lived, with the ANDP banning data collection more than two months after it was launched in the country. Source: Worldcoin
The ANDP’s investigation into World ID commenced in November of last year amid growing apprehensions that financial rewards could hinder users’ ability to consent to sharing sensitive biometric information. The World ID system, which creates a unique digital passport authenticated through iris scans, has raised numerous ethical questions regarding user data.
As previously reported, Tools For Humanity was mandated to halt its services for Brazilian users starting January 25. However, the race for effective digital identity solutions continues in the market, despite the challenges faced by World ID.
The Growing Demand for Digital Identification Solutions
The use of digital identification methods is expanding globally, particularly in the light of increasing challenges such as AI-driven deepfakes and Sybil attacks that threaten online security and integrity. Concerns over the legitimacy of user identities are growing, especially on social media platforms plagued by bot accounts.
Recent research from blockchain analytics firm Chainalysis suggests that generative AI has contributed to making cryptocurrency scams more lucrative by facilitating the development of fake identities.
Amid this landscape, some organizations are striving to establish digital identity solutions that adhere strictly to privacy guidelines and avoid regulatory complications. For instance, earlier this year, Billions Network introduced a digital identity platform that does not depend on biometric data, utilizing a zero-knowledge verification technology known as Circom, which has been tested by major financial institutions.
As privacy issues remain a pressing concern, the ongoing evolution of digital identity solutions will be pivotal in balancing technological advancement with the ethical treatment of personal data.
