Throughout his keynote on the Bitcoin MENA convention in Abu Dhabi, Michael Saylor introduced a brand new imaginative and prescient for bitcoin’s function in international finance, increasing past MicroStrategy’s conventional treasury method.
Three layer monetary mannequin
Saylor described a system with three layers:
Bitcoin because the reserve asset, a company credit score layer issued by his firm, and a remaining layer of digital cash that banks or exchanges may provide on high.
He defined that MicroStrategy presently holds about 660,000 bitcoin and is buying between $500 million and $1 billion value every week. Saylor informed the viewers:
“We will purchase extra Bitcoin than the sellers can promote. We’re going to take all of it. We’re going to take it out of circulation.”
Company credit score and digital cash
The following layer includes creating company credit score devices backed by bitcoin, aiming to show bitcoin’s volatility into secure, predictable money flows for establishments. Saylor said:
“If in case you have a very long time horizon, it’s best to take the 30% annual appreciation in bitcoin, however most individuals are not looking for 30% with thirty volatility. They need 10% with ten volatility.”
The ultimate element is the creation of digital cash—dollar-denominated devices constructed from the corporate’s short-duration bitcoin-backed credit score, money, and foreign money equivalents.
Saylor emphasised that such a product would “commerce like a stablecoin” and will provide “an 8% tax deferred yield.”
Regulatory and historic context
Saylor’s construction wouldn’t adjust to the brand new U.S. stablecoin rules, which require full backing by money or authorities securities and prohibit yield funds.
He acknowledged this, noting the probability of such a product launching outdoors the U.S., and highlighted discussions with sovereign wealth funds, banks, and regulators within the Center East.
Centralization and bitcoin’s ethos
Saylor’s method marks a shift from bitcoin’s cypherpunk origins to a mannequin resembling conventional central banking—centralizing reserves, credit score, and financial design inside a single company entity.
Whereas this doesn’t alter the decentralized Bitcoin protocol, it creates a centralized monetary layer on high of it, elevating questions in regards to the future course of bitcoin-based monetary methods.