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Michael Saylor proposes that banks begin storing their customers Bitcoin and issuing loans secured by it.

He insists on revising the 1,250% capital requirement that banks are required to set aside for cryptocurrencies.

Saylor claims that the digital asset market has the potential to reach $100 trillion.

Michael Saylor advocates for U.S. banks to provide Bitcoin custody services for clients and offer loans secured by these assets. He also predicts that the digital asset market could grow to $100 trillion.

Saylor heads MicroStrategy (now Strategy), a software firm known for its large-scale Bitcoin purchases. He outlined this plan in a policy paper following his speech at the Freedom Tech DC summit, organized by the Bitcoin Policy Institute this week.

Saylor wants banks to provide custody servicesthat is, to hold Bitcoin on behalf of their clients. In addition, he wants them to issue loans secured by these bitcoins under transparent and realistic terms.

He believes that global capital adequacy regulations stand in the way of this. The Basel Accord sets standards determining how much capital banks are required to set aside against their assets. It classifies cryptocurrency assets as the highest-risk category, with a risk weight of 1,250% .

Sailor cites this figure as an illustration of the excessive rigidity of the current approach. He proposes that regulators distinguish between three areas of activity, including: taking positions using the banks own funds.

He believes that the adoption of this practice by banks will be a key driver of growth. In his view, an increase in the number of banks competing for Bitcoin holders will attract fresh investment into this asset with limited supply.

MicroStrategy already ranks banks in its Bitcoin Adoption Index for the Banking Sector, which in July showed a 32% adoption rate among major banks.

However, major banks still differ in their views. JPMorgan CEO Jamie Dimon has publicly called Bitcoin a household hazard, although Strategy CEO Fong Le claims that Dimon privately supports the technology.

The era of digital assets and digital intelligence calls for a Digital Rights Bill, not a Bill of Restrictions, he said.”,”detected_source_language”:”RU