PH
Kenya announced on Wednesday that it was suspending the Worldcoin cryptocurrency, whose verification method is based on iris recognition, pending the results of an investigation into “the security and protection of data” acquired by the corporation.
The Worldcoin system, which was launched at the end of June in Germany by OpenAI CEO Sam Altman, is also being investigated by European regulators, most notably in France and Germany.
Worldcoin aims to become a blockchain-based digital passport, allowing individuals to authenticate their identity online without providing personal information. Users must undertake an iris scan via a “orb,” a biometric equipment manufactured by Worldcoin, in order to receive this sesame.
On Wednesday, the Kenyan Ministry of Home Affairs announced in a statement that it was “immediately suspending Worldcoin activities until the relevant government agencies certify the absence of any risk to the public.”
This cryptocurrency is gaining traction in this East African country, which is beset by persistent inflation.
Several thousand people queued in Nairobi’s shopping malls and the main conference center on Tuesday to have their iris scanned before collecting the equivalent of 7,000 shillings (45 euros) in virtual cash, according to an AFP correspondent. The majority of them then resold their “tokens” right away.
“Concerned about the activities (of Worldcoin) which is involved in registering citizens through the collection of eyeball/iris data”, the government said it had launched investigations “to establish the authenticity and legality of the activities, the security and protection of the data collected and how the collectors intend to use the data”.
Contacted by AFP, Worldcoin has not yet reacted to the suspension.
This cryptocurrency, which has caught the attention of various European regulators, is not yet available in the United States, where authorities are attempting to further regulate the sector.
Worldcoin spent three years creating its product, and two million people signed up for a digital passport called “World ID” during the testing period.
BuzzFeed reported in April on the outrage of some of them, who felt imprisoned by the company’s claims after agreeing to have their irises scanned. Worldcoin co-founder Alex Blania stated to the news outlet that communication may have been “better in some cases.”
Some 1,500 “orbs” will be deployed worldwide to enable millions of other users to sign up, according to the Worldcoin website.
The value of the token, initially $1.70, jumped to $3.58, before falling back to $2.37, according to CoinMarketCap.
