What if bitcoin became the foundation of the future global banking system? Michael Saylor, executive chairman of MicroStrategy, now urges nation-states to create digital banks backed by bitcoin. Far from an isolated provocation, this proposal fits into a climate of financial market shifts, marked by growing distrust of traditional banks and a global search for more profitable and resilient solutions against economic uncertainties.
In Brief
- •Michael Saylor proposes to states to create digital banks backed by Bitcoin to compete with the traditional banking system.
- •These banks would offer high-yield and low-volatility accounts, supported by over-collateralized BTC reserves.
- •According to Saylor, such a model could attract between 20,000 and 50,000 billion dollars of deposits worldwide.
- •However, this model triggers criticism, notably about liquidity and the ability to maintain stability in case of massive withdrawals.
Towards a New Banking Era: Saylor’s Proposal to Nations
While MicroStrategy has just surpassed 660,000 Bitcoins in reserve after a new acquisition, Michael Saylor unveiled a new banking model during a conference organized by the Atlas Society. "You can become the digital banking capital of the world," these were the words the executive chairman of MicroStrategy used to address states at the Bitcoin MENA summit in Abu Dhabi.
He proposes that nations set up digital banks backed by bitcoin, capable of competing with traditional institutions by offering high-yield, low-volatility accounts supported by an over-collateralized BTC reserve.
The goal is to attract massive capital flows worldwide, breaking away from banking models considered underperforming. According to his estimates, this type of infrastructure could generate between 20 and 50 trillion dollars in capital inflows, positioning a country as a global hub of digital finance.
Saylor bases his proposal on the growing gap between demand for yield and the performance of classic bank deposits. He observes that bank accounts in Europe, Japan, or Switzerland offer near-zero rates, while euro money market funds cap at 1.5 % versus about 4 % in the United States.
This weakness pushes investors to turn to riskier products, such as corporate bonds. To respond to this, he envisions a model structured around three main pillars:
- •80 % digital credit instruments, to generate yield;
- •20 % fiat currency reserves, to ensure liquidity;
- •Over-collateralization in bitcoin at a 5:1 ratio, maintained by a "treasury"-type entity;
- •An additional 10 % buffer reserve, designed to smooth system volatility.
This model would be deployed within regulated banks, capable of issuing attractive accounts on a large scale. It aims to compete with traditional systems on yield, but also on transparency and security, thanks to blockchain infrastructure.
Saylor claims such a system "could receive billions of dollars in deposits," attracting individuals and institutions seeking reliable yield and alternatives to the classic banking system.
MicroStrategy’s Full-Scale Experiment: STRC
Beyond speeches, Michael Saylor already relies on concrete experience to demonstrate his model’s viability: STRC, a "money market"-type product launched by MicroStrategy last July.
It is a preferred stock with variable yield, designed to offer returns close to 10 % while maintaining price stability near the nominal value. This structure relies on the company’s Bitcoin reserves, used as a treasury operations base. The product has met some success with a market capitalization reaching 2.9 billion dollars.
However, this initiative was met with skepticism. Critical voices, such as Josh Man, former trader at Salomon Brothers, point out potential flaws in the model. "Raising rates on STRC to maintain a peg or price stability will not work when depositors want to withdraw their money," he wrote, suggesting a real risk of liquidity and parity break.
He reminds that the fiat banking system, with its proven deposit management mechanisms, has built a bulwark that crypto alternatives still need to prove. The extreme volatility of bitcoin also remains a major barrier.
The idea of a banking system backed by bitcoin is gaining visibility. If some states take the step, the price of bitcoin could become a key variable in global financial balances, far beyond crypto spheres. A silent redefinition of monetary sovereignty seems underway.