Brazil stops financial incentives for biometric data: Data protection authority keeps control of the controversial World ID project

<P> <strong> Brazil stops financial incentives for biometric data: Data protection authority keeps control of the controversial World ID project </strong> </p>
concerns about privacy and regulatory challenges for the World ID project in Brazil
The National Data Protection Authority of Brazil (ANPD) has decided to maintain the ban on financial incentives for users who provide biometric data in connection with the controversial World ID project. In an official communication, the ANPD confirmed on March 25 that the compensation in cryptocurrency Worldcoin (WLD) for all world IDs that is generated by iris scans in Brazil remains frozen. This decision follows an investigation that was initiated due to increasing concerns about the privacy of the users.
The World ID project developed by the "Instruments for Humanity" organization uses Iris imaging to assign digital identification numbers to users. The ANPD fears that the financial compensation for the provision of biometric data could affect the decisions of the users, which could lead to a distorted agreement. The authorities also expressed that the solutions presented by the regulated unit are not sufficient in order to clear up the concerns about sensitive data processing. According to the Brazilian law, express consent to the processing of biometric data must be "free, informed and clear".
Despite the concerns raised and the review of the ban by the ANPD, the developers of the World ID project have not made any changes to their approach. If the company continues to collect data, it may be a fine of 50,000 Brazilian reais, which corresponds to around $ 8,800 a day.
Regulation of stablecoins in Brazil
In addition to the debate about the World ID project, Brazil is also faced with the challenge of regulating stable coins that make up a significant part of the cryptocurrency industry. The Brazilian central bank recently discussed measures to regulate stable coins to combat money laundering and tax evasion. Such proposals have already triggered concerns among market participants such as Coinbase who fear that excessive regulations could hinder innovation and force companies to find less transparent legal systems.
Overall, these developments illustrate the challenges with which Brazil is confronted with the regulation of digital identities and cryptocurrencies, especially with regard to the protection of the privacy of users and compliance with data protection regulations. The discussion about the World ID project and the regulation of stable coins will certainly be continued at the political and economic level.