Key takeout
- Michael Saylor suggests that Bitcoin should be a major asset in the potential US strategic preparation.
- The US government holds approximately 200,000 Bitcoins worth approximately $17 billion.
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Michael Saylor said Bitcoin is a fundamental asset in the crypto economy, and its decentralized nature qualifies it as a reserve asset for the US.
“Bitcoin is a non-issue asset, so it is universally agreed to basic assets across the crypto economy. It's neutral,” Saylor said. “99% of the energy and capital have jumped into that energy.”
According to Saylor, which owns almost 2.4% of the Bitcoin supply, Bitcoin functions as a safe savings vehicle for individuals, businesses and governments. He described it as “a property of cyberspace.” This is an asset class without an issuer that allows for long-term wealth retention.
“So, when we think of Bitcoin as cyberspace, the logic behind Bitcoin's strategic reserves is not storing Bitcoin. The digital economy really manages to plant a flag in cyberspace because it makes use of Bitcoin,” Saylor said.
Saylor suggested that Bitcoin represents a new kind of property (digital land) that the US must secure before its foreign competitors do. He warned that his failure to act now would allow other countries to control the digital financial space.
“If you first get there… before foreigners, Europeans, Africans, South Americans, Russians, Chinese, the US can own it and benefit from it,” Saylor pointed out.
David Bailey will join Saylor and other industry leaders at the upcoming White House Crypto Summit.
Addressing concerns that government adoption contradicts Bitcoin's original vision as an independent, non-governmental asset, Saylor said Bitcoin's protocol was designed to empower universal adoption, individuals, businesses and even nation-states.
He believes that countries seeking economic stability and financial sovereignty will ultimately turn into Bitcoin as a strategic asset.
Do the reserves need to hold other crypto assets?
Saylor acknowledges the role of Stablecoins and tokenized securities in the financial markets, but he argues that Bitcoin is the only qualifying reserve asset. He believes that other digital assets will help with a variety of functions within the digital economy.
“Their role is to create capital for small businesses that are currently blocked from the capital market,” he said. “I think it would be wise to capitalize a country or company like a product, an asset without an issuer, a real estate… Bitcoin is a product,” Saylor said.
When asked about Ripple's XRP, Saylor said it was a digital token. This is an asset with an issuer that offers a very “interesting and compelling” digital utility.
Saylor has indicated that the executive order will determine whether other crypto assets can be included in the sovereign wealth fund.
“I think the new industry consensus is that Bitcoin should be an element of the strategic reserve in the country in the long run,” Saylor said.
When given the opportunity to advise policymakers, Saylor said his recommendation was to establish clarity in regulations regarding digital assets. He emphasized the need to distinguish between digital products such as Bitcoin, digital currencies, and digital securities.
According to Saylor, once a clear framework is established, he advocates for a transparent and intentional acquisition of Bitcoin to strengthen the country's financial strength.
Saylor's stance reflects the stance of crypto leaders, including Tyler, Cameron Winklevoss and Brian Armstrong, in the fundamental role of Bitcoin.
Winklevoss warns that delaying Bitcoin stockpiles could lead to higher costs, reduced geopolitical impacts and loss of financial sovereignty.
Coinbase CEO doesn't directly oppose the idea of an Altcoin-based reserve, but he believes Bitcoin is the most reliable option for long-term digital asset reserves due to its status as a valuable store.
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