Michael Saylor, co-founder and chairman of business intelligence firm MicroStrategy, has unveiled a comprehensive crypto framework aimed at further integrating Bitcoin and other digital assets into the US economy.
Shared via social media on Friday, Saylor’s proposal comes at a time of increasing institutional interest in cryptocurrencies and aims to position the United States as a leader in the 21st-century digital economy.
Bitcoin And Crypto Framework To Strengthen US Dollar
Saylor emphasizes that a well-structured digital asset policy could significantly strengthen the US dollar, mitigate national debt, and empower millions of businesses. He believes that by establishing a clear and universally understood taxonomy of digital assets, the US can foster innovation and create trillions in value.
Saylor’s framework categorizes digital assets into several key classes, including digital commodities like Bitcoin, which are backed by their own digital power, and digital securities that represent ownership in equities and derivatives.
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Other categories include digital currencies linked to fiat money, fungible digital tokens offering specific utilities, unique non-fungible tokens (NFTs), and digital assets tied to physical commodities like gold or oil.
To ensure the legitimacy of these assets, Saylor insists that a robust framework defining the rights and responsibilities of all market participants is essential.
This system aims to establish a trustworthy environment where issuers have the right to create assets while ensuring fair disclosure, exchanges are responsible for safeguarding client assets and maintaining transparency, and owners are empowered to manage their assets in compliance with local laws.
Central to this framework is the foundational principle that all participants must act ethically, with civil and criminal accountability for their actions.
Transform Digital Markets And Offset National Debt
Saylor also advocates for a regulatory approach that prioritizes efficiency and innovation over “bureaucratic hurdles.” He proposes standardized disclosures and industry-led compliance measures that enable exchanges to assist in data collection and publication. By limiting compliance costs and streamlining the issuance process, he envisions rapid asset creation, potentially reducing timelines from months to mere days.
This empowerment of exchanges to facilitate integrated services for all market participants aims to enhance the overall efficiency of digital asset transactions, fostering a competitive and innovative marketplace.
Looking ahead, Saylor envisions a transformative opportunity for US capital markets, projecting that a strategic digital asset policy could unleash trillions in value creation.
The potential benefits include the rapid issuance of digital assets, which would drastically reduce the time and cost involved, and the expansion of access to capital markets for millions of businesses, democratizing investment opportunities.
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Saylor also argues that by establishing the US dollar as the global reserve digital currency, the nation could catalyze a massive expansion in digital currency markets, growing from $25 billion to an estimated $10 trillion.
Furthermore, Michael Saylor predicts that the global digital capital market could swell from $2 trillion to $280 trillion, with US investors capturing a significant portion of this wealth.
By establishing a strategic Bitcoin reserve, Saylor believes the US Treasury could generate between $16 trillion to $81 trillion in wealth, providing a viable pathway to offset national debt.
At the time of writing, Bitcoin is trading at $97,360, down 4% on the weekly time frame.
Featured image from DALL-E, chart from TradingView.com