MicroStrategy Chairman Michael Saylor has proposed that US banks issue dollar loans secured by bitcoin.
American banks, supported by the authorities and “rarely experiencing failures,” can afford this, the businessman believes. In this way, Bitcoin owners could profit from the growth of the BTC rate without selling their coins. Saylor added that large banks such as JPMorgan, Citi or Bank of America could benefit from the associated credit risks.
MicroStrategy is currently considered one of the largest corporate holders of Bitcoin, with 252,220 BTC in its possession. MicroStrategy completed a $1.01 billion convertible bond placement and purchased 7,420 BTC worth $458 million in mid-September.
The author of The Bitcoin Standard, Saifedean Ammous, disagrees with Saylor. The expert fears that Saylor's idea could fail and bankrupt participants, as happened with crypto lenders Celsius and BlockFi. Ammous believes that Saylor's idea is based on the assumption that the dollar will never collapse.
Custodia Bank CEO Caitlin Long added that there is nothing wrong with lending BTC at 1:1 leverage. However, such leverage implies that the lender has defaulted on its obligations.
Michael Saylor previously said that Bitcoin yields much higher returns than traditional investment instruments: gold, stocks and bonds. The businessman recently boasted that MicroStrategy's Bitcoin buying strategy helped the company outperform the S&P 500 stock index.
