Saylor stated countries could use overcollateralized Bitcoin reserves and tokenized credit instruments to create regulated digital bank accounts offering superior returns.
Bitcoin News
Michael Saylor has pitched nation-states on developing digital banking systems backed by Bitcoin reserves that could offer regulated accounts with higher yields than traditional deposits. The Strategy executive chairman outlined the vision at the Bitcoin MENA event in Abu Dhabi.
Saylor stated countries could use overcollateralized Bitcoin reserves and tokenized credit instruments to create regulated digital bank accounts offering superior returns. He noted bank deposits in Japan, Europe, and Switzerland provide minimal yields, while euro money-market funds pay roughly 150 basis points and U.S. money-market rates approach 400 basis points.
The executive explained that investors turn to corporate bond markets because they are dissatisfied with bank account returns. He outlined a structure where digital credit instruments comprise roughly 80% of a fund, paired with 20% in fiat currency and a 10% reserve buffer to reduce volatility.
Such a product offered through a regulated bank could attract billions in deposits seeking higher returns, according to Saylor. The account would be backed by digital credit with 5:1 over-collateralization held by a treasury entity.
Saylor claimed a country offering these accounts could attract $20 trillion or $50 trillion in capital flows. He argued a nation adopting this model could become the digital banking capital of the world.
The remarks followed Strategy's disclosure that it purchased 10,624 Bitcoin for approximately $962.7 million last week. The latest acquisition raises the company's holdings to 660,624 Bitcoin, purchased for roughly $49.35 billion at an average cost of $74,696.
Saylor's description echoes elements of Strategy's own offerings. The company introduced STRC in July, a money-market-style preferred share with a variable dividend rate of around 10% designed to maintain its price near par while backed by Strategy's Bitcoin-linked treasury operations. The product has grown to approximately $2.9 billion in market cap.
Bitcoin currently trades around $90,500, about 28% below its October all-time high of $126,080 and roughly 9% lower over the past 12 months. Over five years, however, Bitcoin has climbed 1,155% from $7,193 on Jan. 1, 2020.
The company continues to expand its Bitcoin treasury strategy as institutional interest in digital asset exposure grows across traditional finance sectors.
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