The head of Strategy called on countries to build a Bitcoin-based banking system

Michael Saylor, CEO of Strategy, has proposed an initiative calling on nation-states to create Bitcoin-backed banking systems. This idea, announced at the Bitcoin MENA event in Abu Dhabi, aims to attract trillions of dollars in deposits to new digital banking structures.

A New Model for Digital Banking

Saylor proposed using highly collateralized Bitcoin reserves and tokenized credit instruments to create regulated, high-yield digital bank accounts. He believes such a system could offer clients more attractive terms than traditional bank deposits.

Problems with Traditional Deposits

The CEO of Strategy noted that bank deposits in countries such as Japan, Europe, and Switzerland generate virtually no income. For example, money market funds in the Eurozone yield around 150 basis points, while in the US, they yield close to 400 basis points. This low remuneration is driving investors to seek more profitable alternatives, such as the corporate bond market, which Saylor believes "wouldn't exist if people weren't so dissatisfied with their bank accounts."

Structure of the Proposed System

Saylor described the structure of the new banking system, in which digital credit instruments comprise approximately 80% of the fund, combined with 20% fiat currencies and a 10% reserve buffer to reduce volatility. If offered through a regulated bank, such a product could bring billions of dollars to depositors to earn higher returns on their deposits.

Collateralization and Capital Raising

The account would be backed by digital credit with a 5:1 overcollateralization ratio, held in a treasury unit. Saylor claims that a country offering such accounts could attract between $20 trillion and $50 trillion in capital. He believes that a nation that adopts this model could become the "capital of global digital banking."

New Strategy Acquisitions

Saylor's speech coincided with the news that his company acquired 10,624 bitcoins for $962.7 million last week. This latest purchase brings Strategy's total holdings to 660,624 bitcoins, underscoring the company's confidence in the future of the cryptocurrency market and its potential to create new financial systems.

In Conclusion

Michael Saylor's idea of ​​creating Bitcoin-based banking systems opens new horizons for digital banking and could significantly change the approach to traditional financial institutions. In an environment of low interest rates and growing customer dissatisfaction, such a model could become an attractive alternative for many countries seeking innovation in the financial sector.