Changpeng Zhao, founder of Binance, has proposed the implementation of a ‘will function’ on cryptocurrency platforms to ease the transfer of assets after a user's passing.
Changpeng Zhao's Proposal
Changpeng Zhao has proposed a ‘will function’ on cryptocurrency platforms as over $1 billion is lost annually due to lack of proper inheritance mechanisms.
> "Every platform should have a ‘will function’—so that when someone is no longer around, their assets can be distributed to designated accounts according to specified proportions," — shared by Changpeng Zhao.
Binance's Inheritance Feature
The inheritance feature at Binance could represent a significant step forward for the cryptocurrency industry, allowing users to designate heirs for their assets. This initiative arises from user security concerns and the need for long-term asset protection.
The absence of a structured inheritance plan often leads to substantial losses in digital currencies like Bitcoin and Ethereum. This proposed function aims to instill confidence among users while prompting platforms to adopt similar measures.
Potential Outcomes and Changes
If crypto users feel more secure about their digital asset legacy, financial markets might react positively. While Binance leads, other exchanges could follow suit, amplifying calls for legal reforms to allow minors to inherit crypto assets without immediate trading rights.
Potential outcomes may include widespread adoption of inheritance protocols, influencing crypto industry norms and perhaps prompting regulatory shifts.
Changpeng Zhao's proposal for implementing a will function on cryptocurrency platforms may change approaches to digital asset inheritance, helping to prevent annual losses and increasing user confidence.
