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– Michael Saylor insists that banks hold their customers Bitcoin and provide loans secured by these coins.

He advocates for a revision of the 1,250% capital requirements that banks are required to meet with regard to cryptocurrencies.

Saylor claims that the digital asset market could reach $100 trillion.

Michael Saylor is working to ensure that U.S. banks hold Bitcoin (BTC) for clients and issue loans secured by it. He also notes that the digital asset market could surge to $100 trillion.

Saylor heads MicroStrategy (now Strategy), a software development firm that has become famous for its Bitcoin acquisitions. He unveiled his plan in a policy paper following a speech at the Freedom Tech DC summit, organized by the Bitcoin Policy Institute this week.

Sailor is calling on 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 in accordance with clear and enforceable regulations.

He believes that global capital regulations stand in the way of this. The Basel framework sets international standards that determine how much capital banks must hold against their assets. It assigns a risk weight of 1,250% to the riskiest class of cryptocurrency assets.

Sailor cites this figure as an illustration of just how strict the current system is. He suggests that regulators distinguish between three lines of business, including:

Opening positions using the banks own capital.

He expects banks adoption of this technology to become the main driver of growth. In his view, an increase in the number of banks competing for Bitcoin holders will attract new capital to this asset with limited supply.

MicroStrategy already ranks financial institutions as part of its Bitcoin Adoption Index for the Banking Sector, which showed that adoption among major banks stood at 32% in July.

However, major banks still hold differing views. JPMorgan CEO Jamie Dimon has openly called Bitcoin a pet rock, while Strategy CEO Fong Le claims that, in private conversations, Dimon supports the technology.

The era of digital assets and digital intelligence calls for a declaration of digital rights, not a list of prohibitions, he emphasized.”,”detected_source_language”:”RU