As a seasoned crypto investor with a keen eye for potential projects and a deep understanding of regulatory complexities, I find myself intrigued by the case of Worldcoin (WLD) in Ecuador. Having navigated through numerous crypto-related controversies in the past, I can’t help but notice the parallels between this situation and some of my previous experiences.
In June, the cryptocurrency venture Worldcoin (WLD), which was jointly established by the CEO of OpenAI, Sam Altman, made its entry into Ecuador. As the project’s popularity has been increasing, the local government in Ecuador has issued a cautionary notice to its citizens regarding this project.
As an analyst, I’ve just come across a recent statement from Ecuador’s Central Bank (ECB). They’re reinforcing their position on cryptocurrencies and underlining the potential risks associated with using these digital assets for unlawful transactions as a means of payment.
Worldcoin Faces More Controversy
Beginning on June 26th, it was reported that Worldcoin’s identity verification process would become accessible in Ecuador, with the rollout taking place by the end of the month. Currently, these verifications are being offered at six different spots throughout Quito and Guayaquil.
Over the past month and a half, the project has seen an increase in recognition among Ecuadorians, attracting numerous residents who line up every day at Worldcoin locations to have their irises scanned. Yet, local news accounts suggest that many participants consented to the verification process due to essential reasons.
Dispute emerged following X’s assertions that several individuals undergoing the scanning procedure were insufficiently informed to give their consent for the verification process. A user of X observed more than 50 people, dressed modestly, standing in line in Guayaquil.
Following an investigation into the cause of the queue, users apparently got responses such as “apparently they’re wealthy individuals” or “occasionally folks can be quite eccentric.” According to Primicias, users are rewarded with $30 in WLD upon completion of the verification procedure.
A 19-year-old told the local news that they received 13 Worldcoin tokens valued at approximately $29.59 by having their iris scanned with an Orb machine. These tokens were then transferred into a digital wallet specifically made for this transaction. Also, they have the potential to earn up to $100 through the referral program.
As a crypto investor, I’ve been following the ongoing debate surrounding the operations of Tools For Humanity in Ecuador. Contrary to the assertion that they failed to notify Ecuadorian authorities about their commencement of operations, the Data Protection Superintendency (DPS) has denied this claim, adding another layer of intrigue to the situation.
The head of DPS, Fabrizio Peralta, mentioned that the organization has been unable to perform monitoring duties because they’re short on staff and resources.
Ecuadorian Authorities Reiterate Crypto Stance
Last week, the Company Supervision Authority (SOC) released a statement expressing their worries regarding rumors about suspicious activities being conducted via an app named Worldcoin, which have been spreading across various media platforms and social networks.
The Security and Operations Center advised Ecuadorian citizens that the project lacked oversight and regulation by the relevant authority. Furthermore, they strongly suggested that citizens refrain from sharing their biometric details with companies offering rewards for such data.
In a recent update, Ecuador’s Central Bank has reaffirmed its position regarding cryptocurrencies. It is important to note that cryptocurrencies do not hold the status of legal tender or recognized methods of payment across South American nations.
Furthermore, it was made clear that employing payment methods not sanctioned by the Monetary Policy and Regulatory Board (JPRM) or any attempts to replicate them in whole or in part is explicitly forbidden according to Article 98 of the COMF regulations.
Consequently, “all domestic financial activities, including transactions and accounting books, should be conducted using U.S. dollars.” Moreover, the Bank made it clear that measures might be enforced to regulate the usage of cryptocurrencies as a form of payment.
If the European Central Bank determines that cryptocurrencies are being used as a method of payment, it will notify the appropriate legal authorities, such as the State Attorney General’s Office, for further investigation and potential penalties.
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2024-08-15 16:43