Michael Saylor Advocates for Bitcoin-Backed Digital Banking Systems

According to PANews, Michael Saylor, founder and executive chairman of Strategy, is advocating for the development of digital banking systems backed by Bitcoin. Speaking at the Bitcoin MENA event in Abu Dhabi, Saylor proposed that governments could create regulated digital bank accounts using over-collateralized Bitcoin reserves and tokenized credit instruments. These accounts would offer higher yields and lower volatility, potentially attracting trillions of dollars in deposits. Saylor highlighted the low returns 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 approach 400 basis points. This has led investors to turn to corporate bond markets. He outlined a structure where digital credit instruments would comprise about 80% of the fund, paired with 20% fiat currency, and include a 10% reserve buffer to reduce volatility. If offered through regulated banks, depositors could invest billions to achieve higher returns. Saylor emphasized that such accounts would be supported by digital credit with a 5:1 over-collateralization held by a financial entity. He suggested that countries offering these accounts could attract capital inflows of "$20 trillion or $50 trillion."