OpenAI CEO Sam Altman is encountering mounting challenges from international governments regarding his Worldcoin project, which aims to scan the irises of individuals worldwide in exchange for cryptocurrency. The Wall Street Journal reports that regulatory bodies are raising alarms over privacy and data security issues.
Legal Pushback and Challenges
Worldcoin has faced numerous setbacks, including raids in Hong Kong, a prohibition in Spain, fines in Argentina, and a criminal investigation in Kenya. The European Union is also evaluating its approach to the project. Over a dozen regions have either halted Worldcoin's activities or are probing its data handling practices, scrutinizing how the Cayman Islands-based Worldcoin Foundation manages user data, algorithm training, and protects minors from being scanned.
Altman, a notable figure in the AI sector, envisages Worldcoin as a tool to differentiate humans from AI in a future where advanced AI could surpass human intelligence. The project uses a device known as the Orb to scan irises, unique and stable in adults, to verify “humanness.” Users receive a World ID and compensation in Worldcoin's WLD cryptocurrency.
Privacy and Data Concerns
Worldcoin asserts that its technology is designed with privacy in mind, with Orbs deleting images after verification and ensuring iris codes lack personal data unless users consent for their use in algorithm training. However, some regulators claim Orb operators have been prompting users to share their iris images, sparking ongoing concerns over the potential formation of a global biometric database.
Worldcoin's Chief Privacy Officer, Damien Kieran, admitted that novel projects like Worldcoin naturally invite scrutiny. He stated that the company is cooperating with regulators to alleviate concerns and has suspended the image-sharing function while refining its process. Kieran emphasized that Worldcoin neither collects nor sells data, asserting that their technology enhances privacy.
Controversy and Global Reach
Worldcoin hs rapidly expanded, especially in less-developed markets like Indonesia, Kenya, and Nigeria, as well as parts of Europe. Critics argue that the project targets regions with lower technical literacy. In Kenya, Worldcoin registered half a million users within three months but soon ran into legal trouble, including a criminal investigation and a parliamentary review.
The project also received criticism from industry experts. Last year, Ethereum developer Hudson Jameson described Worldcoin as “scary” and “creepy”. Jameson wrote that the Orb is “a creepy way to collect people's biometric data.” He said that the Orb is “essentially a retinal scanner” and that it is “a very personal piece of data.” He also said that the Orb could be used to track people's movements and to identify them without their consent.
Hong Kong prohibited Worldcoin due to the retention of iris images for up to a decade, while Argentina and Spain launched investigations over privacy breaches and allegations of scanning minors. In response, Worldcoin has introduced new protocols, such as verifying identity cards to prevent minors from being scanned and allowing users to permanently delete their iris codes. The project has also fragmented iris codes across encrypted storage to enhance security.
