As global encrypted monetary wealth surges to billions of dollars, there is a growing need for industry to introduce a “will function” to the platform that can support heritage planning in order to protect digital assets and enable responsible future-oriented financial planning.
MoneyZhao Chang Peng (CZ), the founder and former Chief Executive Officer, made a forthright statement on social media platform X on 19 June, once again provoking widespread industry attention to the lack of a well-developed heritage planning mechanism for encrypted money platforms. CZ noted that a fundamental loophole faced by encrypted money investors was that the industry was still not prepared to deal with the attribution of digital assets after the death of the holder. He writes:
“This is a topic that one does not want to face, but the fact is that one cannot live forever. Each platform shall be equipped with a `testate function' to ensure that, upon the death of the holder, its assets are allocated to a designated account in proportion to that assigned.”
He also recommended that the regulatory framework be adjusted to allow minors to hold accounts. “Suspension should allow minors to open accounts (which may restrict their transactions, but which should allow the receipt of funds), he stressed.
The CZ statement was made in response to an X-user after the update was released by Money Ann. The user mentioned that the updated version of 12 June was improving the emergency contact and heritage functions, stating that it was well thought out and citing its April statement that over $1 billion of encrypted assets were inherited through the Centralized Exchange every year as a result of accidental deaths. The user was surprised by the introduction of these updates in the currency, and hoped that other encryption exchanges would prioritize the introduction of similar features to better manage assets in sudden-onset situations.
Zhao Chang Peng further clarified in a follow-up post:
“This is a function that everyone with assets on the platform will eventually need.” He stressed that while “no one wants to use this function”, “accountability for family is a better option”.
He also referred to the complexity of non-custodial solutions, noting that:
“self-custody requires more complex operations to achieve this.”
The CZ comments highlighted the need to simplify the tools of heritage planning as digital wealth becomes more widespread. Despite the complexity of the succession of digital assets, some self-dependant supporters believe that, through careful preparation, users can develop appropriate succession plans through legal wills and security key management programmes while ensuring full control. In their view, decentrized solutions could coexist with the hosting option, providing diversified options based on the technical capabilities and personal preferences of users.