Binance founder and former CEO Changpeng Zhao (CZ) is pointing out an issue that most cryptocurrency platforms still overlook: what will happen to users' digital assets after they pass away?
In a social media post on June 19, CZ urged cryptocurrency platforms to build a "will function," a tool that allows users to decide how their assets should be transferred in the event of their death.
"This is a topic people avoid, but the reality is that humans cannot live forever," he wrote. Zhao acknowledged that while the idea of planning for one's departure can be uncomfortable, it is a necessary thing to do.
"That's one of those features that no one wants to use, but everyone needs," he wrote. "It's better to be responsible for your loved ones."
He emphasized that this feature would allow users to easily transfer their assets to designated accounts or beneficiaries according to a predetermined ratio.
The former CEO's comments came after Binance rolled out an emergency contact and inheritance feature that allows users to designate a contact who can apply for inheritance in the event of their death.
Cryptocurrency is increasingly favored as a legitimate form of investment and asset storage, and Zhao's statements highlight the growing demand for more robust inheritance solutions, similar to those found in traditional finance.
Unlike banks and other financial services, which have clear procedures for transferring assets after death, most cryptocurrency platforms lack such systems, potentially leaving families locked out and stuck in the event of an unexpected loss.
Zhao also addressed the issue of minors owning cryptocurrency. According to him, while underage users may be restricted from trading, they are still allowed to receive and own digital assets.
Some community members have praised Binance's latest feature as "thoughtful" and called on other exchanges and platforms to adopt similar features for transferring and preserving assets.