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- Worldcoin distributes universal basic income in WLD tokens to thousands in Ecuador, sparking widespread participation.
- Fabrizio Peralta-Díaz, Superintendent of Data Protection, reveals government unable to investigate Worldcoin’s legal compliance.
In Ecuador, the cryptocurrency project Worldcoin has gained traction by distributing a universal basic income in the form of WLD tokens to thousands of its residents. This development unfolds as local government authorities admit their incapacity to probe the company’s compliance with Ecuadorian law due to resource constraints.
Fabrizio Peralta-Díaz, the Superintendent of Data Protection, has openly expressed the challenge faced by his agency in investigating whether Worldcoin adheres to national regulations. His statement highlights a significant gap in governmental oversight in the rapidly evolving digital currency domain.
Related: Worldcoin Expands Operations in Ecuador and Resumes in Kenya Amid Regulatory Clearance
The distribution events in Ecuador have attracted large crowds. In Guayaquil, a key economic hub, hundreds have gathered at Worldcoin facilities to participate. These facilities feature ‘Orbs’, sophisticated devices designed to scan the iris of individuals. Social media reports and images from locals like Alfredo Velazco show lines of modestly dressed individuals waiting to exchange their biometric data for cryptocurrency.
According to social media accounts, more than 300 people convened at a Worldcoin location in Guayaquil last Monday.
Many were there to receive 13 WLD tokens, valued at approximately $1.96 each, summing up to around $30. This exchange rate aligns with the current valuation listed on CoinMarketCap. Worldcoin initially offers 60 tokens to new users, which currently equates to about $117.
“In exchange for scanning my iris with an Orb machine, I was given 13 Worldcoin coins worth USD 29.59, which were credited to a digital wallet I created for this purpose,” said a 19-year-old, according to the media outlet Primicias. The same source pointed out that the first users receive 60 tokens, equivalent at this time to about USD 117.
The allure of quick money has persuaded many, including migrants and local impoverished populations, to participate. Some, driven by necessity, see this as an opportunity for minor financial relief. However, not all are eager to trade their personal data; a few have declined, stating privacy concerns and unwillingness to “sell” their information for cash.
Amidst the mixed reactions from the public, the concern over data privacy grows. Worldcoin’s initiative intersects directly with the functions of the Data Protection Superintendent’s office, as Peralta-Díaz pointed out.
He also noted that Worldcoin aims to use this collected data to enhance an artificial intelligence algorithm that could identify real humans on the internet. This component adds another layer of controversy to the project, stirring public debate about the ethical implications of such data collection practices.
Despite the superintendent’s reservations and the palpable public skepticism, the lack of resources means that the investigation into Worldcoin’s operations remains stalled. This situation poses questions about the balance between technological advancement and privacy rights, a debate that is becoming increasingly relevant as digital currencies become more integrated into daily life.