Worldcoin: The launch of the world’s first eyeball scanning crypto coin

Introduction

In a move described by some as “dystopian,” AI entrepreneur Sam Altman has launched Worldcoin, a cryptocurrency project that offers digital coins in exchange for a scan of people’s eyeballs. On the first day of its full launch, thousands of people queued up at scanning sites worldwide, enthusiastic and excited to participate in Altman’s intriguing initiative.

Worldcoin’s premise is based on distinguishing between human and AI – perhaps ironic considering Sam Altman’s role as the CEO of OpenAI, the world’s leading AI software. Nevertheless, Altman believes that this innovative concept could totally revolutionise economic opportunities for ‘every human’, whilst also providing a reliable (and private) solution for distinguishing humans from AI.

One of the intriguing claims made by Worldcoin is that its system could even pave the way for an “AI-funded” universal basic income. Sounds great right?

Well, it certainly seems that the company’s promise that they’re for ‘Every Human’ is true, but whether or not they can get every human on board is a very different matter. Even now, Worldcoin is not available in the US due to regulatory concerns which has caused a huge gap in their global reach. Nevertheless, the project has still gained significant traction across Europe, India, and Southern Africa.

At the time of writing, participants who complete the scanning process are rewarded with 25 free Worldcoin tokens, each valued at around $2 (£1.56). Worldcoin has posted images of long queues at scanning sites in Japan and plans to expand its presence globally with 1,500 Orbs in different locations.

How does it work?

The process involves individuals scanning their faces and irises into silver orbs, which takes approximately 10 seconds. Once scanned, the iris data is given a unique number and stored in a massive database, currently housing more than 2 million individuals from 33 countries.

Is Worldcoin really the utopian solution it claims to be?

Despite its seemingly utopian promises, Worldcoin has sparked controversy and raised concerns among privacy experts. Critics have scrutinised the tactics used by Orb operators, particularly in poorer nations, where they are paid on commission for obtaining sign-ups.

Additionally, there are worries that sensitive iris data could fall into the wrong hands, although Worldcoin asserts that no data is stored. Cryptocurrency experts and industry figures have shared mixed opinions about the project. Vitalik Buterin, co-founder of Ethereum, expressed both excitement and concern, praising the privacy-preserving aspects but cautioning against the potential concentration of power in the hands of Worldcoin.

On the other hand, Twitter founder and crypto enthusiast Jack Dorsey seemed sceptical of the project, calling its mission “cute” while warning of potential dystopian implications.

Sam Altman welcomed criticism, however, acknowledging that the project was ambitious and that its success remained uncertain. He emphasised that pushing boundaries and trying innovative approaches were essential for progress.

As the controversial cryptocurrency project gains momentum and offers individuals a chance to be part of this “cryptopia,” the world watches with a mix of intrigue and apprehension. Only time will tell if Worldcoin can indeed deliver on its ambitious promises and pave the way for a new era of economic opportunity and global identity.

Crypto taxation – How will Worldcoin be taxed?

The launch of Worldcoin has perhaps raises some questions about the potential impact of crypto taxation. As more individuals participate in the project and claim Worldcoin tokens in exchange for their biometric data, how might tax authorities around the world approach taxing these digital distributions?

The unique nature of Worldcoin’s distribution, where tokens are received simply for being human, raises interesting questions about how such transactions should be classified for tax purposes.

However, my view is that all one has to do is simply claim the coins (even if one must provide biometric data) then the receipt should be tax-free for UK purposes similar to an airdrop.

Of course, the general buying and selling of Worldcoin will be taxed like any other cryptocurrency.