In response to Bitcoin price volatility, CoinJar is allowing users to lock in the fiat money price of bitcoins with the launch of Hedged Accounts.
The Australian-founded Bitcoin exchange announced the launch of the new feature at financial technology conference Finovate in London, UK.
Users can lock in prices against Australian Dollars, US Dollars, Great British Pounds and the Euro.
However much money users buy for bitcoins today, they will still be able to access the same amount of money from their Hedged Accounts when converting bitcoins to cash, confirmed a CoinJar spokesperson.
For example, a user buys 1 bitcoin worth say AU$400 today and after one month 1 bitcoin is worth $800, the user will have half a bitcoin but still be able to get their AU$400 when converting it to cash.
“Currently we allow you to store bitcoins in your CoinJar. We are now adding the option to be able to create an account where you peg the bitcoin to a currency of your choice,” said the spokesperson.
There’s no additional charges to use this feature and no time limit to how long users can hold their lock-in price in their Hedged Account, said CoinJar. Users will also be able to change or ‘unhedge’ their Bitcoin price.
Users can transfer funds between their Everyday Bitcoin Account or Cash Account (which they transfer money into) and Hedged Account. Also, users can transfer their Hedged Account amount to their CoinJar Swipe EFTPOS card to make everyday purchases.
The idea behind Hedged Accounts is to help encourage user adoption of Bitcoin by having a way where users don’t have to worry about fluctuating Bitcoin prices and therefore can better budget and plan ahead, CoinJar said.