Anika Begay
Worldcoin (WLD), a cryptocurrency project co-founded by OpenAI CEO Sam Altman, arrived in Ecuador in June. Due to its growing popularity, Ecuadorian authorities have warned citizens about the project.
More recently, the Central Bank of Ecuador (ECB) issued a press release reiterating the country’s stance on cryptocurrencies and reminding users of the risks associated with the illegal use of digital assets as a payment method.
Worldcoin faces more controversy
In June, Worldcoin announced that its World ID verifications would be coming to Ecuador at the end of the month. As of June 26, verifications were available at six locations between Quito and Guayaquil.
The project has gained popularity among Ecuadorians over the past month and a half, with hundreds of citizens reportedly lining up outside Worldcoin locations every day to have their irises scanned. However, local reports have revealed that many users have accepted verification out of necessity.
The controversy arose after X reports that many people undergoing the scanning process were not informed enough to consent to verification. One X user claimed to have seen “over 50 people dressed in humble attire in line” in Guayaquil.
Worldcoin Spot in Guayaquil. Source: Alfredo Velazco on X
After asking why the queue was there, the user would receive responses like “they must be millionaires” and “sometimes people are crazy.” As reported by Primicias, users receive $30 in WLD after the verification process.
“In exchange for scanning my iris with an Orb machine, I was given 13 Worldcoin tokens worth $29.59, which I deposited into a digital wallet I created for this purpose,” a 19-year-old told the local media outlet. They can also get up to $100 through the referral program.
Adding to the controversy, the country’s newly formed Data Protection Superintendence (DPS) denied claims that Tools For Humanity, the company behind the crypto project, had informed Ecuadorian authorities of the start of operations.
DPS Chief Superintendent Fabrizio Peralta also said the institution was unable to carry out its surveillance duties due to a lack of personnel and resources.
Ecuadorian authorities reiterate position on cryptocurrencies
The Superintendence of Companies (SOC) issued a press release last week expressing its concern “over reports circulating in the media and on social networks about irregular activity carried out through an application called Worldcoin.”
The SOC warned Ecuadorians that the project was not supervised or regulated by the institution. It also urged them to refrain from providing their biometric information to companies offering incentives in exchange for such data.
The Central Bank of Ecuador has reiterated its stance on cryptocurrencies in the latest development. The ECB stressed that cryptocurrencies are not legal tender or an authorized means of payment in South American countries.
ECB's press release rgarding crypto assets. Source: Ecuador's Central Bank on X
It further stated that the use of means of payment not authorized by the Monetary Policy and Regulatory Board (JPRM), “or their total or partial simulation, is expressly prohibited under the provisions of Article 98 of the COMF”.
Accordingly, “all transactions, monetary and financial operations and related accounting records, carried out in the country, will be expressed in US dollars”. Finally, the Bank reminded citizens that it is possible to take actions to use cryptocurrencies as a payment method:
If the ECB ascertains the use of cryptocurrencies as a means of payment, it shall inform the State Attorney General’s office so that it can carry out appropriate investigations and adopt appropriate sanctions.
Worldcoin (WLD) us trading at $1.68 in the weekly chart. Source: WLDUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
