New Cryptocurrency Exchanges Tokens for Biometric Data

Despite security and privacy concerns, cryptocurrencies are on the rise in Mexico, with numerous companies launching new tokens or bringing existing ones to the country. One of the latest arrivals is Worldcoin, a company that scans the user’s iris to give them access to their tokens.

Worldcoin arrives in Mexico City to “help give everyone access to the global economy. [The token is] designed to be decentralized, meaning that ultimately its supervision and decision making will rest with its community of users.” Worldcoin was developed by Tools For Humanity, “a global technology company established to accelerate the transition towards a more just economic system.” 

Sam Altman, CEO, Worldcoin, explains that the new cryptocurrency takes biometrics as payment for a token. Mexico City is one of the first countries to accept the Orb in some places. Its objective is to “[enable] universal access to the global economy by building the world’s largest identity and financial public utility,” reads Worldcoin’s website. 

This project is overseen by The Worldcoin Foundation, a non-profit organization legally structured as a Decentralized Autonomous Organization (DAO) and registered in the Cayman Islands. In an open letter released during launch day, Alex Blania and Sam Altman, the overseers of the project, stated that their goal is to create a global economy that is open for and owned by everyone. “We believe Worldcoin could drastically increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preserving privacy, enable global democratic processes and eventually show a potential path to AI-funded UBI,” they say. 

In Mexico, cryptocurrency use has been on the rise with Bitcoin Lightning Network’s new partnership with Grupo Salinas. Their goal is to “go beyond basic banking services and empower unbanked and underserved populations, opening up new avenues for raising funds for companies and accessing broader markets.” In Mexico, a lot of the population is not in the banking system, but with the rise of fintechs, they have been able to acquire debit cards, credit cards and loans. 

As of June of this year, there are 10 businesses in Mexico that can accept some crypto tokens as a form of payment: Café Punta del Cielo, Gandhi Bookshop, 7 Eleven, Farmacias Benavides, Elektra, Farmacias del Ahorro and others. 

In Mexico City, those interested in the token can visit two cafes and use an iris scanning device called Orb, which creates a code and gives the user a Worldcoin Token (US$0.01139). 

However, Worldcoin does not specify how long it stores iris data before deleting it, among other privacy concerns. The company has stated that it is possible to use Worldcoin without disclosing personal information and that the biometrics scan necessary for it to work is done locally in the Orb, where only the code is transmitted. 

Worldcoin has been subject to controversy. The company was suspended in Kenia, France has opened an investigation against it for possible data privacy infractions and Daniel Monastersky, an Argentinian lawyer specialized in data privacy, has warned Argentina’s Information Access Agency that Worldcoin may be breaking data privacy laws. For an in depth look about the potential cybersecurity risks poised by Worldcoin click here.