Proposal Envisions High-Yield, Low-Volatility Accounts Powered by BTC Reserves and Tokenized Credit
Michael Saylor, head of the largest corporate Bitcoin treasury, is calling on governments to create Bitcoin-backed digital banking frameworks capable of attracting trillions in global deposits. Speaking at a regional Bitcoin event in Abu Dhabi, he argued that sovereigns could leverage overcollateralized BTC reserves to offer regulated accounts with yields far above traditional deposits.
Saylor’s pitch centers on combining Bitcoin reserves with tokenized credit markets to design modern, yield-enhanced banking products at a national scale a structure he claims could reposition a participating country as a global hub for digital finance.
A Blueprint for Bitcoin-Supported Deposit Accounts
According to Saylor, bank deposits in Japan, Europe and Switzerland earn minimal or no yield, driving savers toward corporate bonds or higher-risk alternatives. By contrast, he outlined a model in which:
- Digital credit instruments make up around 80% of the portfolio
- Fiat currency accounts for 20%
- A reserve buffer of 10% sits on top for added stability
- Bitcoin collateral supports the credit at 5:1 overcollateralization
He argued that if such accounts were offered through a regulated institution, nations could attract tens of trillions of dollars in cross-border capital seeking better returns.
Saylor claimed any country adopting this system could position itself as “the digital banking capital of the world.”
Strategy’s Expanding Bitcoin Footprint
His proposal comes shortly after his company disclosed the purchase of 10,624 BTC, lifting total holdings to more than 660,000 BTC. Strategy has also experimented with Bitcoin-linked financial products, including a preferred share designed to maintain price stability while offering a variable dividend.
Despite long-term appreciation BTC has risen more than 1,100% over the past five years — critics note that short-term swings remain a major risk. Some investors argue that Bitcoin-backed, high-yield products may struggle in stress scenarios, raising questions about liquidity and stability.
The debate highlights the tension between Bitcoin’s long-term performance and its near-term unpredictability — a challenge any nation-state banking model would need to address.
Disclaimer
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