The global digital identity project, World Network (formerly Worldcoin), has encountered a significant issue in Brazil. Starting January 25, 2025, the project cannot give coin rewards to Brazilians for their biometric information. This action comes after a thorough review by Brazil’s National Data Protection Authority (ANPD), which highlighted worries about ethical practices and data security in the fast-changing area of digital identity systems.
Why Was World Network Targeted?
World Network, co-founded in 2019 by Sam Altman, the CEO of OpenAI, seeks to create a global digital identity system. The project’s main technology uses iris scans taken by an advanced gadget called the “orb.” Users share their biological data to earn crypto tokens, which help run the network.
The new project, although creative, has raised important questions worldwide about data privacy and ethics, especially after it started in Brazil in late 2023. The ANPD began a review soon after the project was introduced in the country to check if it followed Brazil’s strict data protection laws.
The ANPD’s Decision and Issues
Brazilian law requires that people willingly agree to allow their private personal data to be used and be fully informed about what they are agreeing to. The ANPD found that World Network’s plan to give users crypto as a reward might weaken the trustworthiness of user agreements. This worry grew because of the risk of exploitation, especially for people in weak financial situations.
Similar Problems in Other Countries
Brazil is not the first country to question the methods of the World Network. In December 2024, Germany’s data protection body acted against the project for breaking the rules of the European Union’s General Data Protection Regulation (GDPR) rules. These global issues highlight the increasing attention paid to projects that deal with private biometric data.
World Network’s coin, WLF, has also been affected by these changes. After Brazil’s news, the token dropped 8% in value, going below $2, a significant drop from its high of $11.74 in March 2024.
Conclusion
Brazil’s ban on Worldcoin’s crypto rewards highlights the need for responsible and clear practices in digital identity. New technologies like iris scanning and blockchain can be very useful, but they need to follow strict data protection rules and respect people’s rights.
