Brazil has maintained a ban on cryptocurrency payments linked to the World ID project.

World (formerly WorldCoin) is a digital identity project that creates digital identities through iris scanning.

 News

 Brazil's data protection agency has upheld its decision to limit cryptocurrency payments related to the World ID project, citing user privacy concerns.

 Brazil's National Data Protection Authority (ANDP) said in an announcement on March 25 that it had rejected a review request filed by World ID developer Tools for Humanity, still prohibiting it from providing financial compensation to users who provide biometric data through iris scans. 

 A translated version of the announcement states: "The suspension continues for financial compensation in cryptocurrency (WorldCoin - WLD) or in any other form for any global ID created through iris scans of Brazilian personal data subjects."

 In addition, ANDP said that if Tools For Humanity resumes its data collection activities, the company will face a fine of 50,000 Brazilian reals (about $8,800) per day.

 As of press time, Cointelegraph has reached out to Tools For Humanity for a response but has yet to receive a response.

The race for digital identity solutions has accelerated.

 Even though WorldID broke the law in Brazil, the rise of AI deepfakes and cyberattacks is driving up demand for digital identification methods in other markets. The rise of bots and artificial intelligence is also affecting online interactions on social media platforms such as X and Facebook.   According to Cointelegraph, as many as 15% of accounts on the X platform may be bots.

 Furthermore, research from blockchain analytics firm Channelysis shows that generative AI is leading to the proliferation of cryptocurrency scams, as it can be used to create false identities.

 Some companies are trying to create digital identity solutions without triggering privacy concerns and regulatory crackdowns.   Earlier this year, Billions Network launched its digital identity platform that does not require biometric data.

 The platform is based on a zero-knowledge authentication technology called Circom and has been tested by major financial institutions such as HSBC and Deutsche Bank.

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