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Worldcoin, a company specializing in iris biometrics, digital identification, and cryptocurrency, has announced its expansion into Malaysia, marking a significant milestone with the backing of the Malaysian government. The initiative comes through a Memorandum of Understanding (MOU) signed by MIMOS Berhad, a key applied research and development agency, the Worldcoin Foundation, Tools for Humanity (TFH), and e-government services provider MyEG.
According to Worldcoin’s blog, the MOU aims to harness the Worldcoin protocol and TFH technologies to enhance ongoing and future projects related to digital credentials in Malaysia. MIMOS is set to provide the technical infrastructure, while MyEG will offer the necessary support for integration. The collaboration builds on a previous MOU signed in 2022, which laid the groundwork for the Malaysia Blockchain Infrastructure (MBI).
The new agreement paves the way for extensive collaboration on digital infrastructure, manufacturing, and national blockchain projects. These efforts are expected to have a broad impact on Malaysia’s economy, contributing to the development of a skilled digital workforce and improving the security, efficiency, and scalability of the country’s digital ecosystems.
However, the deployment of Worldcoin’s iris-scanning Orbs in Malaysia has sparked mixed reactions. The company promotes these devices as a means to provide “proof of humanness,” a feature central to its digital identity solutions.
Concerns in Ecuador Over Biometric Data
Worldcoin’s expansion has not been without controversy. In Ecuador, where the company recently initiated iris-scanning operations in two cities, concerns have been raised about the implications of sharing biometric data. The South American nation’s Superintendency of Companies has issued a warning highlighting the risks associated with providing biometric information to Worldcoin and its parent company, TFH.
The alert specifically mentions Worldcoin’s practice of offering WLD cryptocurrency tokens in exchange for biometric data, a strategy that has raised eyebrows among Ecuadorian authorities. They have expressed concerns over the lack of transparency regarding the use of this sensitive information.
Global Scrutiny and Publicity
Worldcoin’s activities have drawn significant attention worldwide, with major publications such as The Wall Street Journal (WSJ) and Bloomberg Technology covering the company’s ongoing challenges and controversies.
A WSJ article by Angus Berwick discusses the various legal hurdles Worldcoin has encountered, including raids in Hong Kong, a block in Spain, fines in Argentina, and criminal investigations in Kenya. The report also notes the upcoming decision on whether Worldcoin can continue its operations in the European Union.
The WSJ piece estimates that the total value of WLD, Worldcoin’s cryptocurrency, could be around $15 billion. Despite this, the Worldcoin Foundation, based in the Cayman Islands, still controls 97 percent of WLD, leading to concerns about market manipulation due to the limited supply in circulation.
Worldcoin’s Chief Privacy Officer, Damien Kieran, has defended the company’s practices, asserting that their iris-scanning technology is inherently privacy-enhancing. He emphasized that Worldcoin does not collect or sell personal data, as they cannot link the biometric information to specific individuals.
In an interview with Bloomberg, TFH CEO Alex Blania, who co-founded Worldcoin with Sam Altman, acknowledged the challenges and skepticism surrounding the project. He reiterated that while the technology might seem complex, its purpose is straightforward: to protect democratic processes and combat issues like synthetic identities and deepfakes.
Blania also pointed out the importance of understanding the benefits of the technology, even if the technical details are not fully grasped by the general public. He maintained that Worldcoin’s mission is “truly critical” for the future of democracy and societal values.
As Worldcoin continues its global expansion, the company faces the dual challenge of advancing its innovative technologies while addressing the concerns and regulatory hurdles posed by governments worldwide.
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