New Zealand Entrepreneurs Aim to Stop Cryptocurrencies Being Lost
It’s been estimated that up to a fifth of all Bitcoin has been lost due to issues such as the owner of the wallet no longer having access to it, and this problem extends to other cryptocurrencies too. Thankfully, a couple of Māori entrepreneurs have found a way to ensure that digital money gets passed on to the next generation when the owner passes away.
The Growth of Crypto in NZ
A report from early 2022 suggested that around 324,000 Kiwis own cryptos, giving a usage rate of 9% among adults here. This was a significant increase from the 7% rate a year earlier but still well below the global figure of 15%. However, the research suggested that a high percentage of New Zealanders are aware of digital currencies and considering buying some.
We can see the increased uptake of cryptos in areas such as the number of online casinos that now allow players in NZ to fund their accounts in this way. When we visit company websites for information on this industry, we see that casinos including 7Bit, Vave, and The ClubHouse accept digital money. Bitcoin is the most widely accepted crypto, with these sites also offering welcome bonuses to reward new users.
It’s also possible to use crypto ATMs, although the number of them across the country has fallen to just one. The first Bitcoin ATMs were launched by Bitto NZ in 2014 but problems with connecting them to banks meant that some were closed until only one in Auckland remains at the current time.
While the lack of ATMs may explain why the uptake here is lower than the global average there are businesses here that accept crypto. They include the Abalone Thai restaurant in Christchurch, Electrolux NZ, and the Bookabach rental firm. If initiatives like the Everlasting service encourage more people to use Bitcoin and other tokens, we can expect to see this selection expand further.
Details of the New Project
The name of the new service that will secure digital currency for later generations is Everlasting, and it follows news stories of several cases where the death of a cryptocurrency owner resulted in money being lost forever. Perhaps the most famous case was that of Gerald Cotten, who had sole control of US$190 million (NZ$300 million) of funds for the QuadrigaCX exchange based in Canada when he disappeared in mysterious circumstances.
With around 10% of New Zealanders currently owning crypto funds, the loss of access to this money is likely to become a bigger issue over time. Paul Salisbury is one of the co-founders of the Everlasting service, and he confirmed that their research has revealed that more than 1,400 crypto owners in NZ will die each year, potentially leaving their digital assets in limbo.
Their solution has been created by accounts, lawyers and digital security experts, with the company calling it the first crypto estate planning option in Australasia. The estate lawyers will hold a key for each client who signs up and then work with the beneficiaries to ensure that the money is passed over as smoothly as possible. After New Zealand, they plan to launch their services in Australia and Singapore.
The interest shown by Kiwis in cryptos suggests that this new estate planning service should be a success. It removes one of the great fears of using these tokens and that may help persuade more people to give cryptocurrencies a try.
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