Michael Saylor, founder and executive chairman of Strategy, proposed the establishment of digital banking systems backed by Bitcoin at the Bitcoin MENA event held in Abu Dhabi. He suggested that governments could create regulated digital bank accounts using over-collateralized Bitcoin reserves and tokenized credit instruments, offering high returns with low volatility, potentially attracting trillions of dollars in deposits. Saylor highlighted the low-interest environment on bank deposits in Japan, Europe, and Switzerland, noting that euro money market funds yield around 150 basis points while U.S. money market rates are near 400 basis points, prompting investors to favor the corporate bond market. He outlined a structure where digital credit instruments would constitute approximately 80% of the fund, 20% would be fiat currency, and a 10% reserve buffer would help reduce volatility. According to Saylor, if these accounts are provided through regulated banks, investors could deploy billions of dollars for better returns. These accounts would be backed by digital credit with a 5:1 over-collateralization held by the financial institution. He believes countries offering such accounts could attract between $20 trillion and $50 trillion in capital. As Bitcoin and other cryptocurrencies gain prominence in finance, Saylor’s proposal could pave the way for integrating digital assets into the traditional financial system, enhancing investment opportunities in banking and providing investors with more stable and profitable options.
Source: binance
