- The Bavarian State Office for Data Protection Supervision (BayLDA) initiated an investigation into Worldcoin due to concerns about its collection and use of biometric data.
- Other authorities in France and the United Kingdom have also expressed apprehension about Worldcoin’s data collection methods, underscoring the global concern surrounding the project.
The German Data Watchdog’s Investigation
The Bavarian State Office for Data Protection Supervision, known as the BayLDA, has reportedly instigated an investigation into Worldcoin’s operation since November 2022. The prime focus of the probe lies on Worldcoin’s utilization of biometric data, notably its method of distinguishing genuine users from bots via retinal scans. As of July, more than 2 million individuals had registered with Worldcoin before the inauguration of its token.
Authentication vs verification
Authenticating ownership (e.g. FaceID) uses biometrics as a password, where a 1:1 comparison is performed against a saved ID template.
Verifying uniqueness compares biometrics against (up to) billions of registered users in a 1:N comparison. pic.twitter.com/u2cfHkKFI9
— Worldcoin (@worldcoin) July 31, 2023
The President of BayLDA, Michael Will, stated that these technologies were neither “established nor well analyzed” for executing financial information transfers. This uncertainty opens up a potential risk to the users of Worldcoin, putting the project under further scrutiny.
Worldcoin’s Approach Questioned Internationally
Worldcoin’s distinctive approach to data collection has also raised eyebrows outside Germany. The French National Commission on Informatics and Liberty, for example, labeled Worldcoin’s methods as “questionable.” Likewise, the Information Commissioner’s Office in the United Kingdom has flagged similar apprehensions about the project.
Tools For Humanity, the parent company behind Worldcoin, operates a subsidiary in Germany. Still, the project has garnered interest from users across different nations, highlighting the global scale of these concerns.
Worldcoin, since its token launch, has been onboarding new users at a staggering rate, with co-founder Sam Altman reporting a new verification every eight seconds. High-profile figures in the crypto realm like Ethereum co-founder Vitalik Buterin and Block CEO Jack Dorsey have given their views on the project, accentuating both its potential benefits and the ensuing controversy.
