According to Cointelegraph, the ongoing debate over biometric data collection and digital ID systems has intensified, with Evin McMullen, co-founder of Privado ID, a decentralized blockchain ID system, expressing concerns about financial incentives compromising informed consent. McMullen highlighted that individuals in emerging market economies are particularly vulnerable to coercion when offered financial rewards for their biometric data. She stated that paying people in challenging economic circumstances for such data is akin to coercion rather than genuine consent.
Governments worldwide have raised ethical and data safety concerns regarding biometric data collection, leading to restrictions or outright bans on digital ID systems. The World ID project, formerly known as Worldcoin, has faced legal challenges in several countries, resulting in suspensions or bans. The project involves scanning individuals' irises at various locations to provide proof of personhood. Kenya was the first to ban Worldcoin in August 2023, citing privacy and data security issues.
In March 2024, Spain's Agency for the Protection of Data (AEPD) ordered Worldcoin to cease data collection, accusing it of gathering biometric data from minors. Portugal followed suit the same month, suspending Worldcoin for three months while its National Data Protection Commission (CNPD) investigated the project's iris-scanning technology. In May 2024, Hong Kong's Office of the Privacy Commissioner for Personal Data (PCPD) halted Worldcoin's operations, claiming the collection of facial images violated the Personal Data Privacy Ordinance (PDPO).
Most recently, in January 2025, Brazil banned World and prohibited the company from offering cryptocurrency in exchange for biometric data. Brazil's National Data Protection Authority (ANPD) argued that such financial incentives compromised informed consent, undermining the ethical collection of sensitive information. These actions reflect a growing global scrutiny of biometric data practices, emphasizing the need for ethical standards and informed consent in digital ID systems.
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