Brazil Upholds Ban on Cryptocurrency Compensation Linked to World ID Project

According to Cointelegraph, Brazil's National Data Protection Authority (ANDP) has reaffirmed its decision to prohibit cryptocurrency compensation associated with the World ID project due to concerns over user privacy. The agency rejected a request from Tools For Humanity, the developer of World ID, to reconsider its ban on offering financial rewards to users who provide biometric data through iris scans. The announcement, made on March 25, stated that the suspension of financial compensation in the form of cryptocurrency, specifically Worldcoin (WLD), or any other format, will remain in effect for any World ID created by collecting iris scans of personal data subjects in Brazil. Tools For Humanity faces a daily fine of 50,000 Brazilian reais ($8,800) if it resumes data collection activities. The World ID verification process in Brazil was short-lived, as the ANDP halted data collection just over two months after its launch in the country. The investigation into World, previously known as Worldcoin, began in November of the previous year amid concerns that financial incentives might undermine users' ability to consent to sharing sensitive biometric data. The World ID, a controversial digital passport created through iris scans, aims to authenticate humans online. Despite the legal challenges in Brazil, the demand for digital identification solutions is increasing in other markets, driven by the rise of AI deepfakes and Sybil attacks. The proliferation of bots and AI is also affecting online discourse on social media platforms like X and Facebook, with reports suggesting that up to 15% of X accounts may be bots. Research from blockchain analytics firm Chainalysis indicates that generative AI is enhancing the profitability of crypto scams by facilitating the creation of fake identities. In response to privacy concerns and regulatory scrutiny, some companies are developing digital identity solutions that do not rely on biometric data. Earlier this year, Billions Network introduced a digital identity platform based on zero-knowledge verification technology known as Circom, which has been tested by major financial institutions such as HSBC and Deutsche Bank. This approach aims to provide secure digital identity solutions without compromising user privacy.