Germany’s data protection agency has been scrutinizing Worldcoin, a project helmed by OpenAI CEO Sam Altman, over concerns of large-scale handling of sensitive biometric data.
Worldcoin’s Biometric Data Use Raises Concerns
Launched last week, Worldcoin aims to establish a new “identity and financial network.” Users provide iris scans in exchange for a digital ID and, in some regions, complimentary cryptocurrency. However, this approach sparked an investigation by the Bavarian State Office for Data Protection Supervision, initiated in November 2022.
President of the state regulator, Michael Will, explained that they had concerns over the project’s extensive processing of sensitive data using novel technology. As the company backing Worldcoin, Tools For Humanity, has a subsidiary in Germany, the Bavarian state regulator leads the investigation under the European Union’s data protection regulations.
Evaluating Potential Risks
“These technologies are neither established nor extensively analyzed for the core purpose of transferring financial information,” Will commented. This situation presents multiple risks, including the uncertainty of users providing informed consent to process their highly sensitive biometric data, he added.
Worldcoin, when contacted for a comment, did not immediately respond. The company’s website, however, claims to uphold privacy and mentions encrypted storage of personal data.
Worldcoin’s Global User Base
Since the project’s initiation, Worldcoin has set up various sign-up sites worldwide, including Germany, France, and Spain. Prospective users register via face scans by a gleaming spherical “orb.” According to Worldcoin, the project has attracted about 2.1 million sign-ups, primarily during a trial phase over the past two years.
However, privacy advocates have expressed concern over the broad collection and storage of biometric data, which could potentially increase surveillance or discriminate against certain demographics.
Furthermore, Worldcoin has caught the attention of several European supervisory authorities, which have sought further information, according to Will. France’s privacy watchdog conveyed to Reuters that the legitimacy of Worldcoin’s data collection seems dubious. Meanwhile, Britain’s data regulator also confirmed that they would investigate the project.
