Michael Saylor Urges Nations to Build Bitcoin-Backed Digital Banks With High-Yield Accounts
- Speaking at the Bitcoin MENA event in Abu Dhabi, Michael Saylor encouraged nation-states to facilitate the creation of high-yield, zero-volatility, Bitcoin-backed bank accounts.
- Saylor said these accounts would need to be backed by a Bitcoin treasury company with sufficient reserves to over-collateralise holdings at a 5:1 ratio and would require full approval from national banking regulators.
- The country that does this, according to Saylor, could attract as much as $50 trillion in capital from depositors around the world looking to earn higher yields.
Michael Saylor, Bitcoin true-believer and CEO of the world’s largest Bitcoin treasury company, has called on national governments to support the creation of high-yield, zero-volatility, Bitcoin-backed bank accounts — which he believes would attract trillions of dollars in deposits.
Speaking at the Bitcoin Middle-East and North Africa (MENA) event in Abu Dhabi on December 9, Saylor said countries could leverage over-collateralised Bitcoin reserves and tokenised credit to create a new type of bank account offering significantly higher yields than traditional bank accounts, corporate bonds and even money market funds.
“The biggest idea is create high-powered digital money,” Saylor said, referencing a phrase once used by Satoshi Nakamoto.
“The way to create high-powered digital money is to take digital credit…and create a fund which is 80% credit and 20% currency, lay a 10% reserve buffer on top, strip away all the volatility — take it to a vol of 0 — and offer someone 8% in a bank account.”
Saylor fleshed out his vision by adding that such a bank account would be “powered by digital credit, which is in turn powered by a treasury company with 5x as much digital capital — over-collateralised.”
“Do it with a regulated bank endorsed by the bank regulator…I wire you my tens of billions of dollars and you pay me 8% interest everyday.”
Saylor believes the nation that establishes this kind of digital credit-based banking system could “presumably attract $20 trillion or $50 trillion.” The Strategy CEO added, “why wouldn’t everyone with all the money in Europe or Africa or South America or Asia or Japan or Australia or Canada or the US just send all their money to your country?”
Related: Why MSCI’s Pending Decision Isn’t the Real Risk for MicroStrategy — or Bitcoin
Bitcoin-backed High Yield Bank Accounts Are The “Nuclear Fusion Reactors” of Money: Saylor
The Strategy CEO characterised his vision of high-yield Bitcoin-backed bank accounts as the perfect product.
The perfect product is a bank account with zero volatility that pays you four hundred basis points more than the risk-free rate in your favourite currency.
Michael Saylor, Strategy CEO
Saylor even went so far as declaring these bank accounts to be a technological achievement on the scale of nuclear fusion reactors and light sabres (never mind that these don’t actually exist).
“If you want the light sabre of money, the laser beam of money, the nuclear fusion reactor of money it’s gonna be a digital bank account. And the innovation’s gonna be digital capital [combined with] digital credit [combined with] a digital fund plugged into a digital account blessed by a regulator.”
Related: Michael Saylor Denies Rumours of Bitcoin Sell-Off: “We’re Buying—A Lot”
Saylor’s remarks came a day after he announced on X / Twitter that his company Strategy had acquired an additional 10,624 BTC for approximately US$962.7 million (AU$1.4b) at US$90,615 (AU$136.7k) per Bitcoin. Strategy now holds 660,624 purchased for around US$49.35 billion (AU$74.5b), approximately US$74,696 (AU$112.7k) per Bitcoin.
The post Michael Saylor Urges Nations to Build Bitcoin-Backed Digital Banks With High-Yield Accounts appeared first on Crypto News Australia.
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