WorldCoin's Iris-Scanning Technology Faces Global Scrutiny and Backlash

Worldcoin's Iris-Scanning Tech Faces Global Pushback

As that report noted, Germany is far from alone in its concern, with more than a dozen jurisdictions having either suspended Worldcoin's operations or launched probes into the company, founded by OpenAI CEO Sam Altman. As PYMNTS wrote last year, the Worldcoin project's stated goal is to capture participants' biometrics with its proprietary Orb to provide them with a "proof of personhood" -- as well as the company's digital currency -- something that the company said "will become more important as increasingly powerful AI [artificial intelligence] models become available." In other words -- and as the WSJ report pointed out -- it's a case of Altman using the technology from one of his companies to protect people from the potential downside of his other firm. So far, the project has drawn a mix of both support -- 6 million people have signed up -- and skepticism. For example, regulators in Hong Kong raided the company's offices there in May, while Spain and Portugal have both blocked its use. The Bavarian regulator is expected to release a decision in its investigation soon. Their concerns are multifaceted, the report said. How does the company train its algorithms? What steps does it take to avoid scanning children? What does it do with user data? And several authorities have accused Worldcoin of telling operators of its Orb scanning device to encourage users to turn over iris images. According to the report, privacy advocates say these images could be used to construct a global biometric database with little oversight. Damien Kieran, Worldcoin's chief privacy officer, told WSJ any venture like this one was bound to attract scrutiny, and the project was working with regulators to address concerns. For now, WorldCoin has paused its image-sharing option for users while it develops a new process, he said, and its training materials don't ask operators to induce users to share biometric data, said Kieran. "We've built a technology that by default is privacy-enhancing," Kieran said in an interview. "We don't collect data to harvest it. We don't sell data. In fact, we couldn't sell it, because we don't know who the data belongs to."

OpenAI CEO Sam Altman's Worldcoin Attracts Global Backlash Over Iris-Scanning, Project Defends Itself As 'Privacy-Enhancing'

Sam Altman, the CEO of OpenAI, is facing a global backlash over his Worldcoin initiative, which aims to scan the irises of every person on the planet and compensate them with a unique cryptocurrency. The project has been met with resistance from numerous governments, leading to suspensions and investigations. Why It Matters: Worldcoin, a part of Altman's expansive business empire, is designed to provide financial assistance to individuals whose livelihoods are disrupted by AI. The project verifies human identity using iris scans and distributes payments in its WLD cryptocurrency. Despite its claims of privacy, Worldcoin has been accused of encouraging users to share their iris images, raising concerns about the creation of a global biometric database. Authorities in over a dozen jurisdictions have taken action against Worldcoin, including raids, fines, and criminal investigations. The project's future in the European Union is also uncertain. Altman, a prominent figure in the AI revolution, has defended Worldcoin, asserting that the project is working to address regulatory concerns. "We've built a technology that by default is privacy-enhancing," Damien Kieran, the project's chief privacy officer said in an interview. "We don't collect data to harvest it. We don't sell data. In fact, we couldn't sell it, because we don't know who the data belongs to." Worldcoin, which launched in 2023, has verified over six million people in nearly 40 countries, with a theoretical value of $15 billion. Altman, who has a stake in the project, has been working to expand its global presence, attracting users from both developed and developing markets. WLD is actively traded, but in chat groups where holders congregate, the focus is more on using the token to bet on Altman's other ventures. For example, its price nearly quadrupled following the February release of OpenAI's Sora video tool. See Also: Bitcoin Could Soar 200% This Cycle If This Happens Worldcoin has been implementing new measures to address regulatory concerns, including a reservation function for unverified users and additional security features for iris codes. The project's leadership, including Altman and co-founder Alex Blania, has been engaging with governments and regulators to address these issues. Why It Matters: Worldcoin's journey has been marked by significant milestones and challenges. The project launched in July 2023, aiming to create a global identity and financial network by leveraging iris-scanning technology. In August 2023, Worldcoin introduced a feature allowing unverified users to reserve their Worldcoin tokens, which they could claim upon completing the iris scan. This move was aimed at attracting new users to the platform. Despite regulatory hurdles, Worldcoin has seen substantial growth. In June, the project experienced a significant surge in token value following a favorable decision from Kenyan authorities. This led to Worldcoin outperforming major cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD. In July 2024, Worldcoin's value soared by 40% after Tools for Humanity announced an extension of token lockup periods for early contributors, further boosting investor confidence. Price Action: WLD is currently trading at $1.52, up 0.65% in the last 24 hours. Over the past month, the token has dropped 40.95%, and it's down 8.89% overall, according to data from Benzinga Pro. Read Next: Trump-Era White House Official Anthony Scaramucci Says Industry Leaders Want Bipartisan Commitment On Crypto Regulation: 'We Don't Want To Fight Any Side' Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs