It’s not unexpected that managing a loved one’s digital assets after their passing is a duty that is becoming more and more prevalent as more and more areas of our life transfer to the digital realm. Due to its rising popularity, cryptocurrency is a digital asset that frequently makes news. Due to cryptocurrency’s early development (in the first decade of the twenty-first century), many people are still unfamiliar with it and may unintentionally skip the estate administration stage of dealing with cryptoassets.
What is cryptocurrency?
Cryptocurrency is digital money which uses encryption techniques to generate currency and verify the transfer of funds. It has been designed to be quicker, cheaper, and more reliable than our regular government-issued money, removing the middleman in all transactions. However, it’s important to note that there is currently no regulation for the ownership or transfer of cryptocurrency in the UK; therefore, many are still doubtful about using it.
There are various forms of cryptocurrency, including the likes of Bitcoin, Ripple, Ethereum, Litecoin, and Dogecoin. As of February 2022, Statista reported that there were 10,397 cryptocurrencies, which highlights the importance of ensuring cryptocurrencies are accounted for during estate planning and estate administration.