Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ Brand Stories / Potential Risks of Signing up for Worldcoin
BackBack
BRAND POST

Potential Risks of Signing up for Worldcoin

This article will explain Worldcoin and the risks associated with governments and individuals adopting it as a currency

WorldcoinPremium
Worldcoin

The global economy is constantly changing because of various innovative technologies and digital means of payments entering the financial markets all around the world. Through the years, thousands of digital currencies have come into the fintech industry, for instance, bitcoin. Thanks to blockchain technology, many more are being developed, and the fintech ecosystem will witness more in the future.

Today, one of the digital currencies that is rocking the crypto ecosystem is Worldcoin. Like every digital currency that has come into the global financial ecosystem, Worldcoin has its associated potential risks. This article will explain Worldcoin and the risks associated with governments and individuals adopting it as a currency.

What is Worldcoin?

Worldcoin is a cryptocurrency project centered on creating a global financial network and identity for everybody on Earth. The project rewards people users with the Worldcoin crypto token by scanning their eyes with an orb called Worldcoin Iris Scan. 

The Worldcoin eye scan scans the iris of humans to prove they are human and unique. When the orb verifies the uniqueness of the human, it rewards the user with Worldcoin tokens. 

The Worldcoin ecosystem has a World App that allows user to make purchases, transfers, and payments using Worldcoin tokens. The project plans to distribute over 10 billion Worldcoin tokens to 80% of its users in 2023. 

Potential Risks of Signing up for World Coin

The global networking and financial network that Worldcoin promises has made it a strong consideration for adoption as an alternative currency by individuals and countries. The fact remains that Worldcoin will offer many benefits, but there are things we must consider before adopting it. Let us explore the individual and national risks associated with adopting Worldcoin as an alternative type of currency.

Individual Risk Associated with Adopting Worldcoin

Some of the major potential risks that individuals will face in adopting Worldcoin are:

  • Fraud
  • Loss of data privacy.
  • Volatility in exchange rates.

Fraud

Loss of money through fraud and cybercriminal activities is almost always a constant concerning digital currency. This concern persists because there are almost no established regulatory bodies to monitor people's financial transactions with digital currencies. Hence, users are not protected from fraud and cyber-attacks. 

Loss of Data Privacy

The Worldcoin eye scan identifies the uniqueness of humans by scanning their iris to obtain basic personal data about them. Hence, when you sign up for the project and use the Worldcoin iris scan, you will submit your basic details as proof of your humanness. 

Submitting your data could lead to a loss of data privacy as the team could sell them to a third party. Therefore, you could lose your data to an unknown third party by signing up for the project and getting scanned via the Worldcoin iris scan.

Volatility in Exchange Rates

If everyone adopts the project as an alternative means of payment, our global financial markets will be hit with new high levels of volatility. With more adoption will come highly volatile exchange rates between our traditional currencies and Worldcoin.

Moreover, digital currencies are known to be very volatile. Hence, when there is increased adoption of Worldcoin, we will have increased volatility in our financial markets, which could lead to massive loss of individual funds. 

National Risks Associated with Adopting Worldcoin

Here are some major risks countries will face if they adopt Worldcoin as an alternative currency.

  • More economic instability.
  • Increased criminal activities and money laundering.
  • Cybersecurity threats

More Economic Instability

The adoption of a digital currency like Worldcoin by a country will entail its inclusion in the country's monetary policies. Most times, the high volatile exchange rate between traditional currencies and digital currencies could lead to a high level of economic instability. 

Increased Criminal Activities and Money Laundering

Worldcoin lacks consumer protection and is not regulated by any known body. It means that they are not accountable to any governmental body. These problems could be the right mix for creating a financial environment supporting and increasing criminal activities, including money laundering. 

National Cybersecurity Threats

Like every other digital currency, cybersecurity threats are a major risk of Worldcoin. Any security breach could result in a heavy loss of funds for the government. It could even crash the economy of the country. 

Conclusion

Worldcoin promises a global financial network for all. However, with the potential risks of world governments and individuals signing up for the project, adopting it as an alternative currency should come with much caution. The Worldcoin eye scan exposes everyone, including the government, to the above-mentioned threats. Hence, adopting or signing up for Worldcoin should be carefully considered to mitigate these risks for individuals and countries. 

Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein. 

The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. 

Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute a financial advice.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 Jul 2023, 06:47 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App