The Bavarian State Office for Data Protection Supervision (BayLDA) has reportedly initiated an investigation into the human identity verification project, Worldcoin, based on concerns regarding the handling of biometric data. According to a report by Reuters on July 31, the German data watchdog launched the probe into Worldcoin’s activities in November 2022. With over 2 million sign-ups prior to the token’s launch in July, Worldcoin aims to differentiate real individuals from bots through retinal scans for identity verification.

BayLDA became interested in Worldcoin due to their collection of retinal scan data for verification. President Michael Will expressed concern, stating that the technologies utilized by Worldcoin were not yet well-established or thoroughly analyzed for securely transferring financial information, potentially posing a risk to Worldcoin users.

The French National Commission on Informatics and Liberty has also raised questions about Worldcoin’s data collection methods, while similar concerns have been cited by the Information Commissioner’s Office in the United Kingdom. Tools For Humanity, the company behind Worldcoin, has a subsidiary in Germany, although the project has attracted interest from users in various countries.

Since the token launch in July, co-founder Sam Altman reported that a new individual is being verified via iris scans every 8 seconds worldwide. Notable figures in the cryptocurrency world, including Ethereum co-founder Vitalik Buterin and Block CEO Jack Dorsey, have offered their perspectives on the Worldcoin project. Crypto users have highlighted potential benefits, such as using the platform to compensate individuals impacted by the collapses of Three Arrows Capital and FTX.

Summary

The German data watchdog, BayLDA, has launched an investigation into Worldcoin’s activities starting in November 2022. The probe was prompted by concerns over the storage and handling of biometric data, specifically retinal scans used for identity verification. President Michael Will expressed unease over the use of unestablished technology in financial transactions, which potentially poses risks to Worldcoin users. The French National Commission on Informatics and Liberty and the Information Commissioner’s Office in the United Kingdom have also raised concerns about Worldcoin’s data collection methods.

FAQs

What is Worldcoin?

Worldcoin is a project that aims to differentiate real individuals from bots by utilizing biometric data, specifically retinal scans, for identity verification.

What prompted the German government watchdog investigation into Worldcoin?

The investigation was initiated by the Bavarian State Office for Data Protection Supervision (BayLDA) due to concerns regarding the handling of biometric data, particularly the use of retinal scans for identity verification by Worldcoin.

What are the concerns raised by the German data watchdog?

President Michael Will of BayLDA expressed concerns about the technologies used by Worldcoin, stating that they are not well-established or thoroughly analyzed for secure financial transactions. The use of unestablished technology poses potential risks to Worldcoin users.

Have other authorities raised concerns about Worldcoin?

Yes, the French National Commission on Informatics and Liberty and the Information Commissioner’s Office in the United Kingdom have also raised questions about Worldcoin’s data collection methods and practices.

What potential benefits have been associated with Worldcoin?

Some cryptocurrency users have highlighted the potential benefits of Worldcoin, including the ability to use the platform to compensate individuals affected by the collapses of Three Arrows Capital and FTX.