Crypto’s Inheritance Problem Sparks New Conversation
Changpeng Zhao, widely known as CZ and the former CEO of Binance, has called on crypto platforms and custodians to implement a "Will Function"—a feature that would allow users to designate beneficiaries and ensure proper distribution of digital assets in the event of their death.
A Long-Ignored Concern in Crypto
In the traditional financial world, asset inheritance is a well-established process governed by legal frameworks. However, in the crypto industry, the decentralized and pseudonymous nature of digital assets has created a major gap: what happens to crypto when the owner passes away?
CZ’s statement reignites the conversation around digital inheritance, emphasizing the need for user-friendly mechanisms that allow crypto holders to pass on their assets securely and seamlessly.
> “Many people still don’t think about what happens to their crypto after they’re gone. Without a clear system in place, billions could be lost forever,” said CZ in a recent statement.
Why a ‘Will Function’ Matters
Unlike bank accounts or real estate, cryptocurrencies are often stored in private wallets, protected by unique keys that only the owner knows. Without proper planning or access, these assets can become inaccessible upon the user’s death.
A "Will Function" would allow users to:
Assign one or more beneficiaries to their crypto assets
Set custom rules for when and how the assets are distributed
Integrate time-locks or inactivity triggers for execution
Prevent total asset loss due to forgotten keys or sudden death
Growing Demand for Estate Planning in Web3
As crypto adoption rises globally, more users are beginning to hold significant portions of their wealth in digital assets. From Bitcoin and Ethereum to NFTs and tokenized real estate, these assets now need the same estate planning tools that traditional investors have long relied on.
Some companies are already exploring solutions like smart contract-based wills, multisig wallets with conditional access, and decentralized identity verification. However, mainstream exchanges and wallet providers still lack built-in features to address this problem comprehensively.
Industry Response and the Road Ahead
CZ’s suggestion is timely, especially as regulators and financial institutions push for more investor protection in the crypto space. While implementing such a feature would require careful consideration of privacy, legal jurisdiction, and security, many experts believe it’s a necessary evolution for the industry.
If widely adopted, the “Will Function” could help:
Build trust among older and legacy-focused investors
Reduce cases of lost assets due to death or incapacity
Set new standards for responsible crypto ownership
As CZ continues to influence the industry beyond his CEO role, his latest advocacy reflects a maturing mindset in the digital asset space—one that recognizes the importance of planning for the inevitable.