CoinJar has added a hedging feature for its bitcoin brokerage and wallet service. Users can ‘peg’ their bitcoins’ value to that of fiat currency, with AUD, GBP, EUR or USD as the choices currently available.
The feature can be valuable to, for example, businesses and charities accepting bitcoin but want to avoid exposure to its volatility. CEO Asher Tan said:
ACY Securities’ Sponsorship of Australian Turf Club off to a Flying StartGo to article >>
“Hedged Accounts are great for people who want to start out with bitcoin for practical purposes but don’t want to manage it actively or worry about price volatility.”
In essence, an account holder’s balance fixed in fiat terms, meaning that the true bitcoin balance can fluctuate. CoinJar did not elaborate further on the mechanics, but the setup effectively means that you are not holding bitcoins.
Similar services by other providers have popped up during the past year, with some offering the option to peg your bitcoin holdings to gold.