Neo-Cryptocolonialism
Author: Shalom Bright Omondi
If you are not being sold a product, then you are the product...
On Friday, August 4, 2023- hundreds of Kenyans flocked to Quickmart outlets across Nairobi in order to get the free tokens offered by the Orb platform.
These recent developments in the crypto world in Kenya have put people on hold. Under the Orb platform, Kenyans were promised free money in exchange for their personal data. This data could then be used by Orb to target them with advertising or sell it to other companies.
While some people may be willing to trade their personal data for free money, others may not be aware of the potential risks involved.With the introduction of a new wave of crypto-currency, the Worldcoin, there has been a rush to cash in on the economic benefits by Kenyans in general.
However, there are concerns that this new wave of cryptocurrency could lead to a form of neo-cryptocolonialism.
The idea Neo-Cryptocolonialism itself is not a new one. It could be described as a digital conception of neocolonialism. Neocolonialism has been broadly understood as a further development of capitalism that enables capitalist powers (both nations and corporations) to dominate subject nations through the operations of international capitalism rather than by means of direct rule.
According to Charles McKelvey, Neocolonialism, “When it functions, the neocolonial system gives the appearance of independence to the neocolony, and the function of ideology is to reinforce this image in order to legitimate the world-system.” When applying this to the digital sphere, a digital entity, such as a cryptocurrency platform like Worldcoin, exercises significant control and influence over users or markets in developing regions which could potentially leading to digital exploitation or dependence on the platform.
The fact of the matter is emergence of Worldcoin has brought again concerns of data privacy and surveillance. The main recipients of this project flowing from developing countries such as Kenya, Sudan, Indonesia, Chile etc.
The project, which aims to create a global digital identity system, requires users to provide their iris scans in exchange for a digital ID and in certain countries free cryptocurrency.
This has raised concerns not only on the potential for the data to be used for surveillance or other purposes but also the risk-factor in maintenance and use of people’s personal data.
Issues have been raised about the following:• The fact that Worldcoin is collecting biometric data, which is considered to be a more sensitive type of data than other types of personal data.• The fact that Worldcoin is not fully transparent about how it will use the data.• The fact that Worldcoin is not clear about how it will protect the data from being hacked or misused.
In response to these concerns, Worldcoin had said that it will delete the biometric data once it has been used to create the digital ID. However, according to the summary section of the Worldcoin biometric data consent form, there is a notable warning in bold that individuals who decide to "sign-up with an Orb" will not have the option to have their personal data deleted afterward.
Worldcoin explains that they will generate a unique Iris Code during this process, and once created, it cannot be deleted without compromising its proof of uniqueness. The concerns about Worldcoin are part of a broader debate about the use of biometric data for identification and other purposes. Biometric data is becoming increasingly valuable, as it can be used to uniquely identify individuals.
However, the collection and use of biometric data also raises privacy concerns.It remains to be seen how the concerns about Worldcoin will be resolved. However, the project has certainly raised awareness of the potential risks of using biometric data for identification and other purposes.
What Is Worldcoin? Worldcoin was an idea that was cofounded by OpenAI CEO Sam Altman who claimed that its system can provide a secure and private way to prove one’s humanness online. It was introduced as an innovative conception in the cryptocurrency world, being described as a global decentralized identity and financial network with users acquiring unique id, a cryptocurrency and an app.
How Does It Work?The Worldcoin platform is divided into 3 unique parts; World ID, World App, and World Token. World ID is regarded as the most essential part of the platform. It enables users to verify their online identity. Interested individuals can obtain their World ID by using the Orb, an eye-scanning device that captures the unique iris pattern and generates an exclusive identification code called IrisCode.
This code prevents individuals from acquiring multiple World IDs. The Worldcoin blockchain stores each World ID, and users can utilize the World app to authenticate themselves.
The World App not only stores users' World IDs but also offers various decentralized finance applications. Users can employ their credentials to verify their identity on third-party applications. Additionally, the app serves as a crypto wallet, capable of holding Bitcoin, Ethereum, USDC, and the Worldcoin token (WLD). Upon creating a World ID and installing the World App, users receive the WLD cryptocurrency token as an incentive. Worldcoin grants users some WLD tokens for free when they scan their eyes for the first time. The number of WLD tokens awarded depends on the user's country of residence and the project's stage. Presently, Worldcoin is providing 25 WLDs to individuals in specific countries who undergo the eye-scanning process.
Regulatory Framework in Kenya for Data Protection:
In regards to Kenya, the key provisions of the law in regards to data protection is the Constitution of Kenya and the Data Protection Act (DPA) of 2019. The Constitution of Kenya ensures the right to privacy as a fundamental right under Article 31 of the constitution which provides that every person has the right to privacy. Now in order to ensure this effect of constitutional right under Article 31(c) and (d), the Data Protection Act of 2019 was enacted and came into force on November 25 2019. The Data Protection Act itself is enforced by the Office of the Data Protection Commissioner.
The ODPC is responsible for ensuring compliance with the Data Protection Act. It is established under section 5 of the DPA. One of the mandates of the ODPC under Section 8 of the DPA is to exercise oversight on data processing operations, either of own motion or at the request of a data subject, and verify whether the processing of data is done in accordance with this Act.Data Protection and Worldcoin The ODPC in a statement on 28th July 2023 had stated that Worldcoin had been launched in the country and that it was processing sensitive personal data in a way that required demonstration of proper safeguards under the Data Protection Act.
They stated that “ Kenyans are urged to ensure that they receive proper information before disclosing any personal or sensitive data.” It is essential to note that the ODPC should have a mandate to ensure that Kenyans are adequately Informed of the risks involved in giving out their data before allowing for the direct intrusion of a global entity such as Worldcoin into the country.
At the end of the day, we must remember that nothing comes for free and the buying of data of African peoples without being informed perpetrates an endless generation of neo-colonialism reminiscent of that of our forefathers.It is therefore of importance for the Kenyan ODPC to consider whether there should be more regulations on how Worldcoin collects biometric data in Kenya in order to ensure that Kenyan peoples data protection rights are not violated.
