Case analysis reveals ethical concerns with biometric data collection for cryptocurrency in vulnerable populations, highlighting the need for transparency.
The case examines Tools for Humanity (TFH), a company that developed a project aiming to create a global digital identity system based on biometrics, using iris-scanning devices to generate a unique cryptographic code linked to the distribution of a cryptocurrency (Worldcoin). Initially conceived to support a Universal Basic Income (UBI) policy, the initiative evolved into a mechanism for proof of humanity in response to the rise of bots on the internet. However, the project raised significant legal and ethical concerns, especially regarding transparency, informed consent, and the protection of sensitive data. Several countries launched investigations into the company’s practices, which included data collection in vulnerable communities – and, in some cases, from minors. Data Protection Authorities (DPAs) in multiple jurisdictions suspended the company’s biometric collection activities conducted in exchange for cryptocurrency, deeming the practice exploitative of vulnerable populations and incompatible with the right to revoke consent, since the “World ID” could not be deleted once generated.
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Feferbaum et al. (2026) studied this question.
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