Call from Changpeng Zhao for the Implementation of Digital Wills
Key Points of the Statement
Former CEO of Binance, Changpeng Zhao (also known as CZ), has made an important call for cryptocurrency platforms to implement a digital will mechanism. This statement was made against the backdrop of an update to the emergency contact feature on the Binance platform, which now provides users with several key capabilities:
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Adding a Trusted Person: Users can designate a trusted individual who will be granted access to their account in case of unforeseen circumstances, such as death or prolonged unavailability. This significantly increases the level of security and confidence for users who are concerned about what will happen to their assets if they are unable to manage them.
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Transferring Assets to Heirs: An important innovation is the ability to transfer crypto assets to heirs. With the appropriate documentation, such as a death certificate and proof of kinship, heirs will be able to access the assets. This creates a legal basis for the transfer of digital assets, which is a crucial step towards safer and more transparent management of inheritance in the cryptocurrency world.
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Notifying Another User: If an account remains inactive for an extended period, another user can be notified about this. This helps to avoid situations where assets remain locked in inactive accounts, which can lead to significant losses for the owners.
Quote from Changpeng Zhao
Zhao emphasized the importance of these changes:
“We do not live forever. Platforms must allow users to specify in advance who will receive their assets and in what proportions.”
This statement reflects a growing awareness of the need to protect user rights and ensure their interests in the face of unforeseen circumstances.
Financial Consequences
According to cryptobraveHQ, approximately $1 billion in crypto assets goes unclaimed each year, reverting to exchanges. This highlights the necessity of implementing mechanisms that help users preserve their assets and pass them on to heirs. Without such measures, many users risk losing their investments, which can adversely affect trust in cryptocurrency platforms as a whole.
Additional Proposals
In addition to the digital will mechanism, Zhao also proposed allowing minors to register with limited access to the platform. This could open new opportunities for youth, enabling them to learn how to manage their finances and invest in cryptocurrency with certain restrictions. Such a step could promote broader acceptance of cryptocurrencies and educational initiatives in this area.
Previously Expressed Opinions
Michael Saylor, CEO of MicroStrategy, has also expressed his intention to leave his BTC for the benefit of humanity. This statement underscores the importance of inheriting crypto assets and the awareness of their value not only for individual investors but for society as a whole. Saylor and other thought leaders in the crypto industry are calling for more active discussions on inheritance and asset transfer issues, which could become an important part of future cryptocurrency regulation.
These initiatives highlight the growing need for regulation and protection of user rights in the cryptocurrency space. The implementation of digital wills and other asset management mechanisms could significantly enhance trust in crypto platforms and ensure their long-term development.
