Sharing their cryptocurrency with friends or family has been a challenge for some, but one exchange claims to have a solution.
If Bitcoin (BTC) traders die, their BTC could be permanently lost on the blockchain if they didn’t give anyone access to their wallets. However, the exchange project wants to give crypto traders another option.
Back in 2020, a study showed that many crypto investors are worried about what will happen to their digital assets when they die. 89% of respondents expressed concern about whether their wealth will pass to family or friends after their death.
In an interview with Cointelegraph, Digital Financial Exchange (DIFX) CEO Jitu Kataria emphasized the importance of having a way to transfer crypto to loved ones in the event of death. According to Kataria, DIFX has developed a blockchain-based nomination program that allows users to choose “trusted individuals, family members and friends as beneficiaries of their cryptocurrency wallets” in the event of the death of the wallet owner.
“Cryptocurrency is here to stay and this feature is essential to secure the digital future. If you are an avid crypto trader like me, I am sure that the idea of who will inherit your cryptocurrency has crossed your mind.”
The CEO also said that the blockchain-based system ensures that the legitimacy of the beneficiaries is verified and not questioned. Kataria believes this is more efficient and secure than the exchange of private keys and credentials.
While this feature is preferred by many, decentralized traders may not be thrilled. However, Kataria believes that centralization is “the key to mass adoption.” He also said:
“Centralization also gives face and accountability to many projects in the crypto industry. This helps the organization ensure the consistency of its services and attract more clients from traditional financial markets.”
Related: What happens to your bitcoin when you die?
DIFX unveiled this feature along with a new corporate identity at the upcoming Crypto Expo Dubai. The program serves the exchange to achieve its goal of a stronger consumer orientation. Kataria said that this is a way for the DIFX team to relieve clients of “pain points” and concerns.