Worldcoin (WLD), a cryptocurrency project co-founded by OpenAI CEO Sam Altman, officially launched in Ecuador in June. Due to the project's rapid growth, Ecuadorian authorities have issued warnings to citizens about potential risks.
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Recently, the Central Bank of Ecuador (ECB) issued a press release reiterating the country’s stance on cryptocurrencies and warning about the risks associated with the unauthorized use of digital assets as a means of payment.
Worldcoin Causes Controversy
In late June, Worldcoin announced that it would begin offering World ID verification services in Ecuador. As of June 26, verification has been deployed at six different locations in Quito and Guayaquil.
The project quickly attracted public interest, with hundreds lining up every day to get their eyes scanned. However, reports suggest that some people agreed to participate because they needed the money, not because they understood the project.
Controversy arose when some people claimed that many participants were not given enough information to understand the iris scanning process. One user Chia on social media X that they saw “more than 50 people in casual clothes lining up” in Guayaquil.
Participants who complete the iris scan receive $30 in WLD, with some able to earn more through the referral program.
Further escalating the situation, Ecuador’s Data Protection Agency (DPS) asserted that the company behind Worldcoin, Tools For Humanity, had never informed authorities about its operations in the country. The DPS also said it had difficulty monitoring due to a lack of resources and personnel.
Ecuadorian Government Warns About Cryptocurrencies
The State Administration of Corporate Affairs (SOC) also issued a press release, expressing concerns about the dubious activities related to the Worldcoin application. The SOC warned people not to provide biometric information to companies offering rewards in exchange for personal data.
The Central Bank of Ecuador also reiterated its stance on cryptocurrencies, stating that they are not legal means of payment in the country. The ECB warned that the use of unauthorized payment methods could result in legal action.
The Bank also stressed that all financial transactions in Ecuador must be conducted in US dollars. If the use of cryptocurrencies as a payment method is detected, the Bank will report it to the Attorney General's Office for investigation and action.
Ecuador Strengthens Cryptocurrency Regulation to Protect Economic Stability
Ecuador’s increased ban on cryptocurrencies is not only driven by legal concerns, but also by the goal of maintaining the country’s economic stability. Ecuador has used the US dollar as its official currency since 2000, helping the country stabilize its economy after the financial crisis.
However, with the rise of cryptocurrencies, authorities are concerned that their use could cause unwanted disruptions to the financial system. Ecuadorian officials say that cryptocurrencies, which are unregulated and highly volatile, could pose major risks to the economy if widely used.
In particular, the popularity of projects like Worldcoin has prompted the government to step up controls to ensure that citizens do not fall prey to unsafe transactions. By tightening regulations, Ecuador is trying to protect the stability of its monetary system while also protecting the US dollar from the encroachment of digital assets.
Worldcoin Chart. Source Tradingview
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