Worldcoin, a bold cryptocurrency project led by OpenAI CEO Sam Altman, is facing swift privacy scrutiny from European data protection authorities as it officially rolls out its services globally. The project’s unique approach involves using “Orb” devices for eyeball-scanning to verify humanness and reward individuals with crypto tokens. However, privacy regulators in the UK, France, and Germany are expressing concerns and investigating the legality of Worldcoin’s data collection and biometric data storage practices under the General Data Protection Regulation (GDPR). European watchdogs are particularly focused on the issue of consent and the project’s complex governance structure. Worldcoin, designed by Tools For Humanity, emphasizes that it complies with all applicable laws and conducts rigorous data protection impact assessments. Meanwhile, the project has already verified over 2 million individuals in 30 countries. As it aims to enable global democratic processes and scale a reliable solution for distinguishing humans from AI online, the startup faces both excitement and skepticism in the cryptocurrency world.
Worldcoin, the ambitious cryptocurrency project initiated by Sam Altman, the CEO of OpenAI, has recently triggered a rapid response from European data protection authorities as it begins its official global rollout. The project’s primary goal is to create a method for distinguishing humans from artificial intelligence in online activities. It encourages individuals to have their biometric data collected through “eyeball-scanning orbs” in exchange for Worldcoin crypto tokens. This approach has sparked interest and debate within the cryptocurrency community.
However, the rollout has not been without controversy, with European data protection authorities expressing concerns about the project’s privacy implications. Specifically, regulators in the UK, France, and Germany are actively investigating Worldcoin’s data collection practices. Under the GDPR, any processing of special category data, such as biometric data used for identification, must meet strict requirements, including explicit and freely given consent from individuals.
Worldcoin’s governance structure has also drawn attention, with the project having a complex organization involving multiple entities, some of which claim to be not-for-profit. European watchdogs are seeking clarity on who is legally responsible for data processing and ensuring GDPR compliance.
In response to the scrutiny, Tools For Humanity, the for-profit technology company leading the development of Worldcoin, asserts that the project complies with all relevant laws and regulations governing personal data processing. The project has conducted a data protection impact assessment and is cooperating with regulatory bodies to ensure privacy and data protection compliance in the European markets.
Despite the challenges, Worldcoin has seen significant interest, with over 2 million individuals in more than 30 countries verifying their World IDs through the “Orb” devices. The startup has raised approximately $250 million, with backing from prominent investors such as Andreessen Horowitz, Khosla Ventures, and Reid Hoffman.
The Worldcoin Foundation, responsible for managing the data collected through the Orb devices, holds about 20% of the total WLD tokens, and the maximum circulating supply is set at 143 million at launch. Worldcoin envisions its technology fortifying incentive strategies, combating bots, and fostering global democratic governance.
Worldcoin’s endeavor to create a global solution for distinguishing humans from AI and promoting economic opportunity has garnered both praise and criticism. While some see it as a potential path to AI-funded Universal Basic Income, others question the project’s reliance on biometric data and the challenges of obtaining explicit consent from individuals.
As the project moves forward with its global rollout, the extent to which it can address privacy concerns and gain acceptance on a global scale remains to be seen.