OpenAI’s World Project Sparks Privacy Fears as It Lands in the US.

OpenAI’s ambitious World project, previously known as Worldcoin, is stirring significant concern as it prepares to launch in the United States. The initiative, which involves iris-scanning technology to create digital identities and distribute cryptocurrency tokens, has already faced global scrutiny for its data collection practices.

Privacy advocates warn that the project’s approach could undermine user protections, particularly in the US, where a fragmented state-by-state regulatory landscape complicates enforcement.

As World sets up operations in five major US cities, i.e., Atlanta, Austin, Los Angeles, Miami, and Nashville, questions about data security, potential discrimination, and regulatory compliance are intensifying.

A Controversial Global Track Record

The world’s journey has been fraught with challenges. The project has encountered investigations in countries like India, South Korea, Italy, and Kenya, while Spain, Hong Kong, and Brazil have imposed outright bans.

In January 2025, Brazil’s National Data Protection Authority halted World’s operations, citing the irreversible nature of biometric data collection and the risk of exploiting economically vulnerable individuals with crypto incentives.

Recent developments indicate that Colombia and Argentina have issued substantial fines, and Kenya has ordered the deletion of thousands of users’ data. Despite these setbacks, World claims to operate lawfully in all available regions, emphasizing its commitment to privacy.

However, critics argue that the project’s reliance on sensitive biometric data, such as iris scans, poses significant risks, including mass surveillance and profiling.

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US Privacy Laws: A Patchwork of Protections

The US presents a particular obstacle to the World due to its lack of a comprehensive federal law governing biometric data. States like California and Texas, where World will operate, have some legal protections, but enforcement varies widely.

In Texas, only the state attorney general can enforce biometric data laws, leaving protections dependent on the administration’s priorities. Georgia, Tennessee, and Florida rely on federal guidelines, which require transparency but lack specific rules for iris scans.

This inconsistency could expose users to exploitation, as privacy advocates warn of potential discrimination and misuse of biometric data. Recent lawsuits in the US, such as Google’s $1.4 billion settlement in Texas over unauthorized data collection, underscore the growing legal risks for companies handling sensitive information.

Privacy Concerns and Activist Pushback

Privacy International, which supported legal action against World in Kenya, has labeled biometric technologies like World’s as a “grave threat” without robust safeguards. Activists fear that the project’s data could be used to facilitate profiling or even revive discredited pseudoscientific practices like phrenology.

In contrast, some blockchain experts, including those involved with the Ethereum Foundation, have praised World’s privacy-focused technology, which is built on the Ethereum network.

However, the project’s futuristic iris-scanning “orbs” evoke dystopian imagery, contributing to public unease. The aesthetic, described by some as having a “Black Mirror” vibe, may hinder user adoption despite technical assurances.

Did You Know?
Biometric data, like iris scans, is considered uniquely sensitive because it cannot be changed like a password, making its protection critical to preventing identity theft.

Opportunities and Risks in the US Market

World is eyeing significant opportunities in the US, particularly in the online dating sector. In Japan, the project has partnered with Tinder, allowing users to verify their identities through World’s system, a move that could reach millions if replicated in the US. With Tinder boasting 7.8 million monthly active users in the US, a similar integration could rapidly scale the world's user base.

However, the project faces hurdles in building trust amid ongoing privacy debates. Recent reports highlight increased US regulatory scrutiny of biometric data, with Illinois and New York pursuing legal actions against firms collecting such information. These developments suggest that the world’s US expansion could face significant pushback.

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A Balancing Act for OpenAI

As OpenAI pushes forward with World, it must navigate a complex landscape of privacy concerns, regulatory challenges, and public perception. The project’s promise of a secure digital identity system is compelling, but its reliance on biometric data raises legitimate fears.

With global bans and investigations mounting, the US launch represents a critical test of Sam Altman's vision. Will World redefine digital identity, or will it become a cautionary tale of privacy overreach? Only time will tell, but the stakes are high for both OpenAI and its users.