Michael Saylor Promotes Bitcoin-Backed Banking System to Various Governments

According to reports from Cointelegraph, Michael Saylor, the founder and CEO of Strategy, is advocating for various governments to develop digital banking systems backed by Bitcoin. These systems would offer high-yield, low-volatility accounts, capable of attracting trillions of dollars in deposits.

Speaking at the Bitcoin MENA event in Abu Dhabi, Saylor suggested that countries could utilize over-collateralized Bitcoin reserves and tokenized credit tools to create regulated digital bank accounts with higher yields than traditional deposits.

Saylor noted that bank deposits in Japan, Europe, and Switzerland offer almost no returns, with Euro money market funds yielding around 150 basis points and US money market rates nearing 400 basis points, explaining why investors are turning to corporate bond markets.

Saylor outlined a structure where digital credit tools make up about 80% of the fund, paired with 20% fiat currency, and a 10% reserve buffer to reduce volatility.

If these products are offered through regulated banks, depositors could place billions of dollars into institutions for higher deposit returns. He mentioned that the account would be supported by a 5:1 over-collateralized digital credit held by a financial entity.

Saylor stated that countries offering such accounts could attract capital inflows of "$20 trillion or $50 trillion."

Related Articles