“Personal data is the new currency” that probably sounds familiar in the reality that we live in today. You probably clicked on this article because you were wondering why personal data is collected in the first place. In the previous article, Why is user data so valuable? we discussed what constitutes value. Today’s topic is an extension of this question.
What constitutes a currency?
Currency in its essence is a medium of exchange. A means by which value can be traded between two or more parties. It is what we commonly refer to as ‘money’. But money itself has taken various shapes and forms from simple seashells to precious metals that predate coinage by centuries. Today, as we see the end of the paper and coin money system come to an end, most believe that cryptocurrencies or CBDCs would replace it. But what if that is just a misconception, and the real exchange of value will be with data.
What happens to my personal data?
More often than not, your personal data is being kept in one of the many corporations’ data lakes. Data lakes are formed when the collection of vast amounts of data is pooled into a central storage location. This is mostly attributable to the nature of the raw and unprocessed data making it easy to merge, but it does not come without risks. These data lakes can often be accessed without having to pass through many security protocols, meaning that they stand to bear serious legal and data privacy law violations for the businesses owning and controlling the lake.
Can personal data be sold?
Yes, your data can be sold and it is being traded right now. Data brokers specialise in the collection, processing and sale of user data to large companies such as Google and Facebook. But on the flip side of the coin, by enabling the user to recall, hold and monetize their own data, it not only cuts off the middleman but also empowers the user to take control over their privacy and allows them to decide how much of their personal data they would like to have out there.
Can personal data be transferred outside the EU?
Technically, yes, but under the governance of the GDPR, the user is protected from this to some extent. If the business or individual transferring your data did not obtain your consent to do so, they could stand to pay fines in excess of millions of Euros. Factors like these urge businesses to be more privacy-conscious when they work with data, a skill that will become absolutely essential in the future as the digital world moves towards the full integration of the IoT.
What others are saying on the topic
Vodafone UK reported in an article earlier this year that personal data could very well become the new currency for trade between consumers and businesses by as early as 2030. According to Chris Sanderson, co-founder of Future Laboratory, “the next decade is going to see the rise of an increasingly data-savvy consumer”.
The WEF even noted this same topic back in 2015, when it was still a fairly less popular talking point at the time. They included the below snippet in their article:
and not much has changed save for the exponential increase in the volumes of data that is being produced and collected, mostly with the assistance of AI, today. The issue that, however, remains such a prominent concern is that personal data must be fairly and lawfully processed.
How can I protect my digital ID?
Fortunately, today, with the implementation of the GDPR in 2019, users are allowed to send a recall or deletion request for their data to the businesses that hold it. But how would you know where your data is stored and who controls it? It’s a daunting task indeed and there are already companies online that try to solve this issue for the user. But the question is, are you getting paid for your data at the end of the day? If you’re looking for simple removal of your digital footprint, then these options could be best suited for you. But if you read last week's article mentioning that the average user is worth anything from EUR 1800 to EUR 2800, you might want to reconsider.
