US Bitcoin reserve idea sparks Davos debate on crypto’s future  

The crypto industry is no stranger to controversy, yet few projects have drawn more scrutiny than Sam Altman’s World, formerly known as Worldcoin.Promising to verify human uniqueness through iris scans and distribute its WLD token globally, World positions itself as a tool for financial inclusion. However, critics argue the project’s biometric methods are invasive, overly centralized, and at odds with the ethos of decentralization and digital privacy.At the heart of the critique is the claim that biometric identity systems cannot be truly decentralized when they rely on proprietary hardware, closed authentication methods, and centralized control over data pipelines.“Decentralization isn’t just a technical architecture,” Shady El Damaty, co-founder of Holonym Foundation, told Cointelegraph. “It’s a philosophy that prioritizes user control, privacy, and self-sovereignty. World’s biometric model is inherently at odds with this ethos.”El Damaty argued that despite using tools like multiparty computation (MPC) and zero-knowledge (ZK) proofs, World’s reliance on custom hardware — the Orb — and centralized code deployment undermines the decentralization it claims to champion.“This is by design to achieve their goals of uniquely identifying individual humans. This concentration of power risks creating a single point of failure and control, undermining the very promise of decentralization,” he said.When reached out for comment, a spokesperson for World pushed back against these claims. “World does not use centralized biometric infrastructure,” they said, adding that the World App is non-custodial, meaning users remain in control of their digital assets and World IDs.The project said once the Orb generates an iris code, the “iris photo will be sent as an end-to-end encrypted data bundle to your phone and will be immediately deleted from the Orb.” The iris code, they claimed, is processed with anonymizing multiparty computation so “no personal data is stored.”World’s disclosure regarding personal custody. Source: WorldEvin McMullen, co–founder of Privado ID and Billions.Network, said that World’s biometric model is not “inherently incompatible” with decentralization but faces some challenges in implementation around data centralization, trust assumptions, and governance.Related: Sam Altman’s World raises $135M from Andreessen, Bain, to expand networkA pattern of tech overreach?El Damaty also drew a parallel between OpenAI’s large-scale scraping of “unconsented user data” and World’s collection of biometric information.He argued that both reflect a pattern of aggressive data acquisition framed as innovation, warning that such practices risk eroding privacy and normalizing surveillance under the banner of progress.“The irony here is hard to miss,” El Damaty claimed. “OpenAI built its foundation by scraping vast amounts of unconsented user data to train its models, and now Worldcoin is taking that same aggressive data acquisition approach into the realm of biometric identity.”In 2023, a class-action lawsuit filed in California accused OpenAI and Microsoft of scraping 300 billion words from the internet without consent, including personal data from millions of users, such as children.In 2024, a coalition of Canadian media outlets, including The Canadian Press and CBC, sued OpenAI for allegedly using their content without authorization to train ChatGPT, claiming copyright infringement.ChatGPT storing personal information against its claims. Source: Sandi FaticWorld, however, rejects this comparison, emphasizing that it is a separate entity from OpenAI. The company said that it neither sells nor stores personal data, citing its use of privacy-preserving technologies such as multiparty computation and zero-knowledge proofs.The scrutiny also extends to World’s user onboarding. The project says it ensures informed consent through translated guides, an in-app Learn module, brochures, and a Help Center.However, critics remain skeptical. “People in developing nations, who World… has mainly been targeting up until this point, are easier to bribe and often don’t understand the risks involved with ‘selling’ this personal data,” El Damaty warned.Several global regulators have pushed back on World’s operations since its launch in July 2023, with governments like Germany, Kenya and Brazil expressing concerns over potential risks to the security of users’ biometric data.In the most recent setback, the company faced challenges in Indonesia after local regulators temporarily suspended its registration certificates on May 5.Related: ‘Humans can tell when it’s a human’ — Community mocks Worldcoin’s Orb MiniThe risk of digital exclusionAs biometric systems like World’s gain traction, questions are emerging about its long-term implications. While the company promotes its model as inclusive, critics say the reliance on iris scans to unlock services could deepen global inequality.“When biometric data becomes a prerequisite for accessing basic services, it effectively creates a two-tiered society,” said El Damaty. “Those willing (or coerced) into giving up their most sensitive information gain access… while those who refuse… are excluded.”World maintained that its protocol does not require biometric enrollment for basic participation. “You can still use an unverified World ID for some purposes even if you do not visit an Orb,” it said, adding that the system uses ZKPs to prevent linking actions back to any specific ID or biometric data.There are also concerns that World could become a surveillance tool — especially in authoritarian regimes — by centralizing biometric data in a way that may attract misuse by powerful actors.World dismisses these claims, asserting that its ID protocol is “open source, permissionless,” and designed so even government applications cannot tie back a user’s activity to their biometric data.The debate also extends to governance. While World says its protocol is moving toward greater decentralization — highlighting open-source contributions and the governance section of its white paper — critics argues that meaningful user ownership is still lacking.“We need to build systems that allow individuals to prove their humanity without creating centralized repositories of biometric or personal data,” said El Damaty. “This means embracing zero-knowledge proofs, decentralized governance, and open standards that empower individuals, not corporations.”Related: Sam Altman’s eye-scanning crypto project World launches in USThe need for secure identity systemsThe urgency behind developing secure identity systems isn’t without merit. As artificial intelligence grows more sophisticated, the lines between human and non-human actors online are blurring.“Risks at the nexus of AI and identity are not limited to any one kind of government system or region,” Privado ID’s McMullen said. She claimed that without reliable verification for both humans and AI agents, digital ecosystems face growing threats—from misinformation and fraud to national security vulnerabilities.“This is a national security nightmare, where unaccountable, unverifiable non-human actors may now be able to engage with global systems and networks, and legacy systems are not built for these types of verification and contextual logic,” McMullen added.Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24

Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.Related: Trump-backed World Liberty Financial partners with Pakistan Crypto CouncilPakistan unveils tax incentives to attract investorsPer the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly welcomed the development, calling it a “turning point” for the country’s digital economy.Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.Saqib first proposed using the country’s runoff energy to fuel Bitcoin mining at the Crypto Council’s inaugural meeting on March 21.The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.Related: Pakistan proposes compliance-based crypto regulatory framework — ReportPakistan creates Digital Asset AuthorityOn May 21, Pakistan’s Ministry of Finance endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: ChainalysisData from Statista also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24

A Manhattan crypto investor is facing serious charges after allegedly kidnapping and torturing an Italian man in a disturbing bid to extract access to digital assets.John Woeltz, 37, was arraigned on Saturday in Manhattan criminal court following his arrest on Friday. He stands accused of holding a 28-year-old Italian man captive for weeks inside a luxury townhouse in Soho, reportedly rented for $30,000 per month.According to police reports cited by The New York Times, the victim arrived in the US on May 6 and was allegedly abducted by Woeltz and an accomplice.The attackers are said to have stolen the man’s passport and electronic devices before demanding the password to his Bitcoin (BTC) wallet. When he refused, the suspects allegedly subjected him to prolonged physical abuse.Source: Mario NawfalRelated: Violent crypto robberies on the rise: Six attacks that targeted investorsCrypto victim beaten, electroshockedThe victim described being beaten, shocked with electricity, assaulted with a firearm and even dangled from the upper floors of the five-story building.He also told police that Woeltz used a saw to cut his leg and forced him to smoke crack cocaine. Threats were also reportedly made against his family.Photographic evidence found inside the property, including Polaroids, appears to support claims of sustained abuse. The victim managed to escape on Friday and alert authorities, leading to Woeltz’s arrest.Woeltz was charged with four felony counts, including kidnapping for ransom, and entered a plea of not guilty. Judge Eric Schumacher ordered him to be held without bail. He is expected back in court on May 28.A 24-year-old woman was also taken into custody on Friday in connection with the incident. However, she was seen walking freely in New York the next day, and no charges against her were found in the court’s online database.Authorities have yet to clarify the relationship between the suspect and the victim or whether any cryptocurrency was ultimately stolen.Related: Crypto crime goes industrial as gangs launch coins, launder billions — UNCrypto executives turn to bodyguardsExecutives and investors in the crypto industry are increasingly seeking personal security services as kidnapping and ransom cases surge, especially in France.On May 18, Amsterdam-based private firm Infinite Risks International reported a rise in requests for bodyguards and long-term protection contracts from high-profile figures in the space.French authorities have responded by introducing enhanced protections for crypto entrepreneurs and their families, including security briefings and priority access to police assistance.This comes amid a recent surge in kidnappings and ransom attempts. David Balland, the co-founder of hardware wallet company Ledger, was kidnapped in January 2025 and held for ransom for several days before being rescued by French police.In May 2024, the father of an unnamed crypto entrepreneur was freed from a ransom attempt after French law enforcement officials raided the location in a Paris suburb where the individual was being held hostage by organized criminals.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express