Michael Saylor Proposes USD Loans Backed by Bitcoin to Generate Yield

Sep 24, 2024, 05:08 PM

MicroStrategy Chairman Michael Saylor has proposed that US banks could offer USD loans backed by Bitcoin holdings, allowing Bitcoin holders to generate yield without selling their assets. This idea, discussed in a recent podcast with Saifedean Ammous, author of The Bitcoin Standard, has sparked debate. While Saylor believes this could revolutionize banking and leverage Bitcoin's potential, Ammous warns it could end badly, comparing it to past financial crises involving excessive leverage. The proposal involves too-big-to-fail US banks, potentially backed by the government, providing these USD loans.