China Plans to Extend Social Credit System to the Metaverse, Raising Privacy Concerns

China is reportedly considering the implementation of a digital ID system resembling its social credit system within the metaverse and other online virtual worlds. According to a recent report, China Mobile, a state-owned telecommunications company, has proposed the establishment of a digital ID for all users in the metaverse and online virtual worlds. This digital ID is envisioned to incorporate both "natural characteristics" and "social characteristics" of users.

The proposed digital ID aims to maintain order and safety within the virtual world by storing a wide range of personal information and identifiable traits, including occupation. Furthermore, the proposal suggests the permanent storage and sharing of this data with relevant authorities. The system's potential benefits were exemplified by its ability to swiftly identify and penalize individuals causing disruptions within the metaverse, such as spreading rumors or causing chaos.

The resemblance between this proposal and China's existing social credit system is evident. The social credit system, under development, assesses and ranks citizens based on various behaviors and metrics, with the intention of promoting positive conduct. Notably, it has also been utilized as an enforcement mechanism. Instances have been documented where people with low social credit scores were denied plane tickets and train tickets as punitive measures.

China Mobile presented these proposals on July 5 during discussions with a metaverse focus group convened by the International Telecommunication Union (ITU), a United Nations agency specializing in communications technology. The focus group is set to reconvene in October, potentially to vote on the proposals. If approved, these measures could have far-reaching implications for telecommunications and technology companies, as the ITU's metaverse group seeks to establish new standards for metaverse services.

Contributors from the focus group suggest that Chinese companies participating in the discussions are presenting a higher number of metaverse proposals compared to their American and European counterparts. This strategic approach aligns with China's aim to establish its proposals as the standard for the metaverse landscape should its usage become widespread.

Critics have voiced concerns over the potential implications of China's proposed identity protocols within the metaverse. The proposals raise questions about surveillance, data privacy, and the role of authorities in shaping virtual world experiences.