Ecuador Reiterates Crypto Stance Amid Worldcoin Controversy

Worldcoin (WLD), a crypto project co-founded by OpenAI’s CEO Sam Altman, arrived in Ecuador in June. Due to its growing popularity, Ecuadorian authorities have warned its citizens about the project.

Most recently, Ecuador’s Central Bank (ECB) issued a press release reiterating the country’s stance on cryptocurrencies and reminding users of the risks involving 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. Starting June 26, the verifications have been available at six locations across Quito and Guayaquil.

The project has gained popularity among Ecuadorians in the last month and a half, with hundreds of citizens reportedly queueing daily outside the Worldcoin spots to scan their irises. However, local reports revealed that many users agreed to the verification out of necessity.

Controversy arose after X reports claimed that many people going through the scanning process were not informed well enough to consent to the verification. An X user stated he saw “over 50 people dress humbly lined up” in Guayaquil.

Worldcoin Spot in Guayaquil. Source: Alfredo Velazco on X

After inquiring about the reasons for the line, the user allegedly received answers 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 the iris scan 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,” said a 19-year-old to the local media outlet. Additionally, they can get up to $100 through the referral program.

Adding to the controversy, the country’s newly founded Data Protection Superintendency (DPS) denied the claim that Tools For Humanity, the company behind the crypto project, had notified Ecuadorian authorities about the beginning of operations.

DPS’s Chief Superintendent, Fabrizio Peralta, also stated that the institution hasn’t been able to carry out surveillance tasks due to a lack of personnel and resources.

Ecuadorian Authorities Reiterate Crypto Stance

The Superintendence of Companies (SOC) issued a press release last week expressing its concern “about the news circulating in the media and social networks about the irregular activity carried out through an application called Worldcoin.”

The SOC warned Ecuadorians the project was not supervised or regulated by the institution. Additionally, it urged them to abstain from giving their biometric information to companies that offer incentives in exchange for said data.

Ecuador’s Central Bank reiterated its stance on crypto in the latest development. The ECB emphasized 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

Moreover, it stated that the use of means of payment unauthorized 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.”

As a result, “all transactions, monetary and financial operations, and their accounting records, carried out in the country, shall be expressed in US dollars.” Ultimately, the Bank reminded citizens that actions can be taken for the use of crypto as a payment method:

The ECB, in case it identifies the use of crypto assets as a means of payment, shall bring it to the attention of the State Attorney General’s Office for its corresponding investigation and sanction.

Worldcoin (WLD) us trading at $1.68 in the weekly chart. Source: WLDUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com