Self-proclaimed Bitcoin development company MicroStrategy, founder Michael Saylor, published the 'Digital Asset Framework' report, believing that by establishing clear classifications, legitimate rights frameworks, and practical compliance obligations, the U.S. can lead the global digital economy. The report also supports the idea of creating strategic Bitcoin reserves to help neutralize national debt.

Digital asset category

Saylor first categorized digital assets into the following categories:

  • Digital goods: Assets without an issuer, supported by digital forces, such as Bitcoin

  • Digital securities: Assets with an issuer, supported by securities, such as stocks, bonds, derivatives

  • Digital currency: Assets with an issuer, supported by fiat currency

  • Digital tokens: Replaceable assets with an issuer that provide digital utility

  • Digital NFT: Non-replaceable assets with an issuer

  • Digital ABT: Assets with an issuer, supported by physical assets, such as gold, oil, agricultural products

Establish its legitimacy

Secondly, there is a need to establish rights and responsibilities:

  • Issuer: The right to create and issue digital assets; the responsibility to ensure fair disclosure and ethical conduct

  • Exchange: The right to custody, trade, and transfer assets; the responsibility for asset disclosure and customer protection

  • Holder: The right to self-custody, trade, and transfer assets; the responsibility to comply with local laws

Practicality: Reasonable compliance to promote innovation

Digital assets need reasonable compliance to promote innovation, including:

  • Standardized disclosure: Define the data structure for each digital asset category to enable fair public disclosure

  • Industry-led compliance: Allow exchanges to collect and publish asset data

  • Cost limitations: Limit issuance and maintenance compliance costs, Saylor believes that issuance costs should be less than 1% of the total asset amount, and maintenance compliance costs should be less than 10 basis points per year

  • Simplified issuance: Remove regulators from the key pathway of digital asset issuance, empowering exchanges to provide comprehensive services to issuers, owners, and other exchanges

Vision of digital assets: A renaissance of capital markets

If the above goals can be successfully achieved, the U.S. has the opportunity to promote the revival of 21st-century capital markets, releasing trillions of dollars in value creation.

  • Rapid issuance: Allow issuers to create and issue digital assets within hours or days

  • Cost reduction: Reduce issuance costs from $10 million to $100 million to $1,000 to $100,000

  • Expanded access: Open capital markets to 40 million businesses (currently only 4,000 listed companies)

  • Broader participation: Enable small businesses, artists, celebrities, and medium-sized enterprises to raise funds through tokenized assets

Establish the U.S. as a global digital leader

The U.S. has the opportunity to promote the revival of 21st-century capital markets, releasing trillions of dollars in value creation. Strategic digital asset policies can enhance dollar strength, neutralize national debt, and make the U.S. a global leader in the 21st-century digital economy.

  • The dollar as the global reserve digital currency: Growing the digital currency market from $25 billion to $10 trillion

  • Digital capital growth: Expanding the global digital capital market from $2 trillion to $280 trillion

  • Digital asset leadership: Driving digital assets from $1 trillion to $590 trillion

  • Strategic Bitcoin reserves: Establishing Bitcoin reserves to create $16 trillion to $81 trillion in wealth for the U.S. Treasury

Peter Schiff: Complete nonsense

Peter Schiff, an analyst known as a gold bull, commented below: 'This is complete nonsense. The proposal will have the opposite effect. It will weaken the dollar, exacerbate national debt, and make the U.S. a laughingstock. It will strip power from businesses, reduce growth, and destroy value.'

Peter Schiff is a staunch advocate of gold. Recently, he criticized MicroStrategy founder Michael Saylor for doubling down on Bitcoin, mocking him with the 'egg person' joke, claiming that MicroStrategy has not made money, and that Bitcoin is just an old scam in a new package.

(Gold people vs. Bitcoin people, will Michael Saylor accept this new human pen battle?)

This article proposes that Michael Saylor suggests the U.S. establish a digital asset framework and strategic Bitcoin reserves first appeared in Chain News ABMedia.

#BTC