Kenya stated on Wednesday that it was halting use of the iris-based Worldcoin cryptocurrency until inquiries into “the security and protection of data” amassed by the company are being conducted.
The Worldcoin system, which was introduced by OpenAI CEO Sam Altman at the end of June in Germany, is also being looked into by European regulators, particularly in France and Germany.
Worldcoin aims to develop into a kind of blockchain-based digital passport that would allow users to authenticate themselves online without disclosing any private information. Users must submit to an iris scan via a “orb,” a biometric technology created by Worldcoin, in order to receive this sesame.
In a statement released on Wednesday, the Kenyan Ministry of Home Affairs said it was “immediately suspending Worldcoin activities until the relevant government agencies certify the absence of any risk to the public.”
In this East African nation, which is particularly troubled by persistent inflation, this cryptocurrency is experiencing a certain amount of success.
A journalist from AFP reported that on Tuesday, thousands of people lined up in Nairobi’s main conference center and commercial malls to have their irises scanned in exchange for virtual currency worth 7,000 shillings (45 euros). Most people subsequently sold their “tokens” again right away.
The government announced that it had begun 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” because it was “concerned about the activities (of Worldcoin) which are involved in registering citizens through the collection of eyeball/iris data.”
Worldcoin has not yet responded to the suspension after being contacted by AFP.
The United States, where the government is working to properly regulate the sector, does not yet have access to this cryptocurrency, which is in the sights of various European regulators.
Two million people registered for a “World ID” digital passport during the test phase of Worldcoin’s three-year project development.
When they agreed to have their irises scanned, some of them became enraged, according to a BuzzFeed piece from April. They felt trapped by the company’s promises. Alex Blania, a co-founder of Worldcoin, acknowledged that communication may have been “better in some cases” when questioned by the news outlet.
According to the Worldcoin website, around 1,500 “orbs” will be placed all across the world to allow millions of additional people to register.
According to CoinMarketCap, the token’s value first stood at $1.70 before rising to $3.58 and then down to $2.37.