Worldcoin or $WLD is a relatively new project of OpenAI CEO, Sam Altman. Its innovation lies in the ability to create a digital wallet by scanning the iris of the eye.
The project aims to create a global currency that will provide people with a basic income. However, in Hong Kong, the project faced serious obstacles.
Hong Kong disapproves of Worldcoin
The Hong Kong Privacy Commission found that Worldcoin's operating methods did not comply with local law. As a result, the project must cease its operations in Hong Kong. This decision was the result of an investigation that found that Worldcoin's scanning and collection of biometric data violated applicable privacy laws.
On May 22, Privacy Commissioner Ada Chung Lai-Ling issued a document that ordered Worldcoin to immediately cease operations in Hong Kong. In particular, scanning and collecting images of irises and faces was prohibited. Despite this decision, the Worldcoin price did not record any significant declines. Investors experienced a decline of only 1.34% in 24 hours. Compared to other altcoins that rose after good news related to Ethereum ETFs, Worldcoin's performance is assessed as "below expectations".
Other cryptocurrencies, including #Ethereum , recorded an increase by 3.17%, and #Binance BNB by 2.83%. #dogecoin also saw an increase of 3.22%. This shows that while the Hong Kong authorities' decision had an impact on Worldcoin, the cryptocurrency market overall remained stable.
Shortcomings and risks associated with Worldcoin
One of the main problems noticed in Hong Kong was the lack of availability of a privacy policy in Chinese. This made it difficult for local residents to understand what exactly they were agreeing to when they provided their biometric data. Additionally, the lack of answers to questions about the potential risks associated with sharing iris scans raised concerns.
The collection of biometric data, especially with the current level of technological advancement, can lead to serious privacy breaches. Combining such data with passport information may allow the opening of bank accounts or other unwanted activities. In the event of a data leak from the #wld database, people who shared their data may be in danger.
These concerns have caused Hong Kong authorities to take decisive steps to protect their citizens. As a result, Worldcoin now faces the challenge of aligning its operations with international data protection standards to continue its mission.