Brazil bans Worldcoin: a critical look at the controversial iris-scanning technology

Brazil has decided to ban Worldcoin, a cryptocurrency accompanied by an ambitious biometric identification system based on iris scanning. This ban raises important questions about the relationship between emerging technologies and the protection of personal data.  

Worldcoin and biometric scanning: an overview  

Launched in 2023, Worldcoin presents itself as an innovative project, designed to authenticate the uniqueness of each individual through iris scans. Through a device called “Orb“, biometric images are collected to ensure that a person cannot register multiple times in the system and to prevent potential abuses.

The goal of the project is apparently ambitious: to provide a universal digital identity, paving the way for new applications based on blockchain, such as access to decentralized payments, the distribution of subsidies, and other financial services. However, the data collection methodology has sparked a heated global debate, with ethical, legal, and operational implications of wide-ranging scope.  

Brazil says no to Worldcoin: a significant decision

The Brazilian government, through the Ministry of Justice and Public Security (MJSP), has ordered the immediate suspension of biometric data collection operations by Worldcoin. The reasoning behind this decision is based on concerns related to citizens’ privacy and the lack of transparency regarding the management and storage of sensitive information.

In a regulatory context where Brazil is strengthening its data protection laws, as the European GDPR has inspired, the decision to ban such invasive technology proves consistent with the principles of safeguarding digital sovereignty. The country has emphasized that it is unclear whether the scanned data is adequately encrypted, nor if it remains protected from possible breaches.  

Privacy and biometrics: the heart of the dilemma

The aspect that raises a stir in the case of Worldcoin is the potential abuse of extremely sensitive personal information. The iris scan does not represent a simple identifying data: it is unique, immutable, and much more difficult to falsify compared to other forms of authentication.  

This uniqueness, which gives biometrics great utility for decentralized applications, can however represent a double-edged sword. In the event of improper handling or violation of these data, an individual’s identity could be irreparably compromised.  

Another critical element is the geographical distribution of the scans. According to the reports, Worldcoin has presented its project mainly in areas with emerging economies, where the level of digital literacy and awareness of privacy rights is often lower compared to more advanced countries. This strategy has raised accusations of exploitation, given the limited ability of local populations to fully understand the implications of using their biometric data.  

A growing market, but without clear rules

Brazil is not the first country to raise doubts about Worldcoin. European authorities, particularly in Germany and the United Kingdom, have also begun to closely examine the activities of the company behind the project, Tools for Humanity. The lack of clear regulation on technologies of this kind represents a gap that, if not adequately addressed, could lead to rampant abuse of personal data.

The central element of the problem is that the regulation of criptovalute and digital identities has not kept pace with innovation: tools like Worldcoin push beyond the boundaries defined by existing laws, challenging the current regulatory paradigms.

Worldcoin in Brazil: a missed opportunity or an avoided risk? 

The Worldcoin project represents, according to many, a bold and innovative vision. However, the approach adopted raises concerns right from the start. The creation of a universal biometric identity system is an endeavor that can lead to significant benefits, contributing to solving issues like online fraud and global financial inclusion. But to achieve these results, a project of such magnitude must be founded on pillars of transparency, respect for privacy, and informed consent.  

In the specific case of Brazil, the ban represents not only a precautionary measure but also a warning signal for other tech companies. Without guarantees on how personal data is collected, protected, and used, the risk of violating fundamental rights is too high to be ignored.  

Lessons from Brazil: looking at future regulation

The choice of Brazil to ban Worldcoin underscores the need for more rigorous and uniform regulation at a global level. With the progressive maturation of blockchain technologies and digital identities, it becomes increasingly crucial to balance innovation with the protection of citizens’ rights.  

To prevent similar episodes from limiting the development of innovative technologies, governments should collaborate with technological organizations to create clear legal frameworks that incentivize ethical practices. Worldcoin, for its part, could benefit from adapting its strategies, focusing on transparency and user empowerment.  

Conclusion

The decision of Brazil signals a turning point in the global debate on the use of biometrics in the field of cryptocurrencies. While technologies like Worldcoin have the potential to transform the way we interact with the digital world, their success depends on the ability to inspire trust through the protection of fundamental rights. The lessons learned from the Brazilian case could be the key to a future where innovation and responsibility walk hand in hand.