When Bitcoin (BTC) traders die, their BTC could be lost forever within the blockchain if they didn’t give anyone else access to their wallets. However, an exchange project aims to give crypto traders another option.
In 2020, a study showed that many crypto investors are concerned about what will happen to their digital assets if they die. 89% of respondents expressed concern about whether their assets would be given to family or friends after their death.
In an interview with Coin-Crypto, Jeetu Kataria, the CEO of Digital Financial Exchange (DIFX), emphasized the importance of a way to pass crypto to loved ones in the event of death. According to Kataria, their project created a blockchain-based nomination program that allows users to “choose trusted individuals, family and friends as beneficiaries of their crypto wallets” in case the wallet owner dies.
“Crypto is here to stay and having this feature is necessary to secure the digital future. If you are an avid crypto trader like me, I am sure the thought of who will inherit your crypto comes to mind.”
The exchange’s CEO also said that a blockchain-based system ensures that the legitimacy of beneficiaries is verified and not questioned. Compared to giving private keys and credentials, Kataria believes this is more efficient and secure.
While the feature is preferred by many, traders who prefer decentralization may not be so thrilled. However, Kataria believes that centralization is the “key for mass adoption”. He also said that:
“Centralization also brings a face and responsibility to many of the projects in the crypto industry. This contributes to the consistency of the organization in its services and to attracting more of the traditional financial markets.”
Related: What Happens To Your Bitcoin When You Die?
DIFX unveiled the feature along with a new corporate identity during the ongoing Crypto Expo Dubai. The program serves as a way for the exchange to achieve its goal of being more consumer-centric. Kataria said this is a way for their team to relieve customers of “pain points” and fears.