- Talking on the Bitcoin MENA occasion in Abu Dhabi, Michael Saylor inspired nation-states to facilitate the creation of high-yield, zero-volatility, Bitcoin-backed financial institution accounts.
- Saylor mentioned these accounts would should be backed by a Bitcoin treasury firm with adequate reserves to over-collateralise holdings at a 5:1 ratio and would require full approval from nationwide banking regulators.
- The nation that does this, in line with Saylor, may appeal to as a lot as $50 trillion in capital from depositors around the globe trying to earn greater yields.
Michael Saylor, Bitcoin true-believer and CEO of the world’s largest Bitcoin treasury firm, has referred to as on nationwide governments to assist the creation of high-yield, zero-volatility, Bitcoin-backed financial institution accounts — which he believes would appeal to trillions of {dollars} in deposits.
Speaking on the Bitcoin Center-East and North Africa (MENA) occasion in Abu Dhabi on December 9, Saylor mentioned international locations may leverage over-collateralised Bitcoin reserves and tokenised credit score to create a brand new sort of checking account providing considerably greater yields than conventional financial institution accounts, company bonds and even cash market funds.
“The largest concept is create high-powered digital cash,” Saylor mentioned, referencing a phrase as soon as utilized by Satoshi Nakamoto.
“The best way to create high-powered digital cash is to take digital credit score…and create a fund which is 80% credit score and 20% forex, lay a ten% reserve buffer on high, strip away all of the volatility — take it to a vol of 0 — and supply somebody 8% in a checking account.”
Saylor fleshed out his imaginative and prescient by including that such a checking account could be “powered by digital credit score, which is in flip powered by a treasury firm with 5x as a lot digital capital — over-collateralised.”
“Do it with a regulated financial institution endorsed by the financial institution regulator…I wire you my tens of billions of {dollars} and also you pay me 8% curiosity on a regular basis.”
Saylor believes the nation that establishes this type of digital credit-based banking system may “presumably appeal to $20 trillion or $50 trillion.” The Technique CEO added, “why wouldn’t everybody with all the cash in Europe or Africa or South America or Asia or Japan or Australia or Canada or the US simply ship all their cash to your nation?”
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Bitcoin-backed Excessive Yield Financial institution Accounts Are The “Nuclear Fusion Reactors” of Cash: Saylor
The Technique CEO characterised his imaginative and prescient of high-yield Bitcoin-backed financial institution accounts as the proper product.
The right product is a checking account with zero volatility that pays you 4 hundred foundation factors greater than the risk-free price in your favorite forex.
Saylor even went as far as declaring these financial institution accounts to be a technological achievement on the dimensions of nuclear fusion reactors and light-weight sabres (by no means thoughts that these don’t really exist).
“If you would like the sunshine sabre of cash, the laser beam of cash, the nuclear fusion reactor of cash it’s gonna be a digital checking account. And the innovation’s gonna be digital capital [combined with] digital credit score [combined with] a digital fund plugged right into a digital account blessed by a regulator.”
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Saylor’s remarks got here a day after he announced on X / Twitter that his firm Technique had acquired an extra 10,624 BTC for roughly US$962.7 million (AU$1.4b) at US$90,615 (AU$136.7k) per Bitcoin. Technique now holds 660,624 bought for round US$49.35 billion (AU$74.5b), roughly US$74,696 (AU$112.7k) per Bitcoin.
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