When Bitcoin (BTC) users pass away, their holdings can be lost forever within the blockchain if they haven’t given anyone else access to their wallets. However, an exchange project wants to give crypto holders another option.
In 2020, a study showed that many cryptocurrency investors worry about what happens to their digital assets when they pass away. 89% of those surveyed expressed concern about whether their assets would be given to their family or friends after their death.
In an interview with Cointelegraph, Jeetu Kataria, the CEO of Digital Financial Exchange (DIFX), highlighted the importance of a way to pass cryptocurrency to loved ones in the event of death. According to Kataria, his project created a blockchain-based nomination program that allows users to choose “trusted people, family and friends to be beneficiaries of their cryptocurrency wallets” in the event of the owner passing away.
“Cryptocurrencies are here to stay and having this feature is necessary to secure the digital future. If you are an avid cryptocurrency trader like me, I am sure the thought of who will inherit your coins has come to mind.”
The CEO of the exchange also said that a blockchain-based system ensures that the legitimacy of the beneficiaries is verified and not questioned. Compared to handing over private keys and access credentials, Kataria believes this is more efficient and secure.
Although this feature may be favored by many, users who prefer decentralization may not be so enthusiastic. However, Kataria believes that centralization is the “key to mass adoption.” He also said that:
“Centralization also puts a face and responsibility on many of the projects in the cryptocurrency industry. This helps the organization to have consistency in its services and to attract more traditional financial markets.”
DIFX revealed the feature along with a new corporate identity at the ongoing Crypto Expo Dubai. The program serves the exchange to achieve its goal of becoming more consumer-centric. Kataria said this is a way for his team to relieve clients of “pain points” and apprehensions.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.