Michael Saylor promotes a Bitcoin-backed banking system to governments around the world

According to Cointelegraph, Michael Saylor, founder and executive chairman of Strategy, is pushing governments to develop a digital banking system backed by Bitcoin, which offers high-yield, low-volatility accounts capable of attracting trillions of dollars in deposits.

Saylor stated at the Bitcoin MENA event in Abu Dhabi that countries could utilize over-collateralized Bitcoin reserves and tokenized credit instruments to create regulated digital bank accounts, which would yield higher returns than traditional deposits.

Saylor pointed out that bank deposits in Japan, Europe, and Switzerland yield almost nothing, while the yield on euro money market funds is about 150 basis points, and U.S. money market rates are close to 400 basis points, explaining why investors are turning to the corporate bond market.

Saylor outlined a structure where digital credit instruments account for about 80% of the fund, paired with 20% of fiat currency, and a 10% reserve buffer is set up to reduce volatility.

If such products are offered through regulated banks, depositors could place billions of dollars into institutions for higher deposit returns. He stated that the account would be backed by 5:1 over-collateralized digital credit held by a fiscal entity.

Saylor claimed that countries offering such accounts could attract "20 trillion or 50 trillion" dollars in capital inflows.