China’s national security agency has voiced growing concerns over the rise of cryptocurrency ventures that collect biometric data, especially those using iris scans. According to officials, such practices could threaten not only individual privacy but also the country’s broader security interests.
In a recent bulletin, China’s Ministry of State Security outlined several technological risks tied to the expanding use of biometric recognition tools. These include systems that capture and store facial, fingerprint, and iris information, often under the pretense of rewarding users with digital tokens.
Without naming it directly, the ministry seemed to refer to the Worldcoin project. The initiative, backed by OpenAI’s Sam Altman, is known for exchanging tokens for iris scans and has already reached more than 160 countries. China, however, is not among them.
A Dangerous Trade for Tokens
Officials warned that once iris data is collected and shared across borders, it becomes extremely difficult to manage or revoke. Unlike passwords, this kind of biometric information cannot be changed if it is leaked. The bulletin highlighted the potential for such data to be misused by foreign intelligence agencies, possibly even for espionage or infiltration of strategic institutions.
China’s authorities also raised alarms about facial recognition systems, saying that improper storage and weak security could lead to data leaks and unauthorized access. According to the ministry, past incidents have involved fake facial data being used to breach sensitive workplaces.
The Call for Caution
While the government acknowledges the convenience offered by biometric systems, it urges citizens to think carefully before handing over such sensitive personal information. The message was clear — the price of free tokens or seamless identification may be much higher than it appears.
An Alternative Approach to Digital Identity
In a parallel development, Ethereum co-founder Vitalik Buterin recently suggested an alternative model for digital identity systems. He introduced the idea of “pluralistic identity,” a framework that uses a mix of government verification, social networks, and community-based signals rather than relying on a single authority.
Buterin warned that creating one global identity per person could eliminate privacy and open the door to surveillance by employers or state bodies. He also pushed back on the idea of using wealth as a verification standard, saying it could favor the privileged while excluding others.
