Michael Saylor, co-founder and chairman of the analytics company MicroStrategy, has introduced an extensive cryptocurrency framework designed to enhance the integration of Bitcoin and other digital assets within the US economy.
Posted on social media on Friday, Saylor’s initiative comes amidst a growing institutional fascination with cryptocurrencies and aspires to position the United States as a frontrunner in the 21st-century digital economy.
Bitcoin And Crypto Framework To Bolster US Dollar
Saylor highlights that a comprehensive digital asset policy could considerably reinforce the US dollar, alleviate national debt, and empower countless enterprises. He argues that by creating a transparent and universally recognized categorization of digital assets, the US can stimulate innovation and produce trillions in value.
Saylor’s structure classifies digital assets into multiple key categories, including digital commodities such as Bitcoin, which are supported by their own digital energy, and digital securities that denote ownership in stocks and derivatives.
Additional categories comprise digital currencies connected to fiat money, fungible digital tokens providing specific functions, unique non-fungible tokens (NFTs), and digital assets linked to tangible commodities like gold or oil.
To ensure the authenticity of these assets, Saylor asserts that a solid framework defining the rights and duties of all participants in the market is crucial.
This system aims to create a reliable environment where issuers are entitled to generate assets while guaranteeing proper disclosure, exchanges are accountable for protecting client assets and ensuring transparency, and owners are empowered to handle their assets according to local laws.
Central to this framework is the fundamental principle that all participants must act with integrity, facing civil and criminal responsibilities for their actions.
Revitalize Digital Markets And Diminish National Debt
Saylor also promotes a regulatory strategy that emphasizes efficiency and innovation over “bureaucratic obstacles.” He suggests uniform disclosures and industry-driven compliance measures that enable exchanges to support data collection and dissemination. By minimizing compliance expenses and simplifying the issuance process, he envisions swift asset creation, potentially shortening timelines from months to just days.
This facilitation of exchanges to provide integrated services for all market players targets enhancing the overall efficiency of digital asset transactions, cultivating a competitive and innovative marketplace.
Looking forward, Saylor foresees a revolutionary opportunity for US capital markets, estimating that a strategically designed digital asset policy could unlock trillions in value creation.
The prospective advantages include the swift issuance of digital assets, which would significantly lower the time and expenses involved, and the broadening access to capital markets for millions of enterprises, democratizing investment options.
Saylor also posits that by designating the US dollar as the primary global reserve digital currency, the country could ignite a considerable growth in digital currency markets, increasing from $25 billion to an anticipated $10 trillion.
In addition, Michael Saylor forecasts that the worldwide digital capital market could expand from $2 trillion to $280 trillion, with US investors capturing a large portion of this wealth.
By establishing a strategic Bitcoin reserve, Saylor believes the US Treasury could produce between $16 trillion to $81 trillion in wealth, providing a feasible route to reduce national debt.
At the moment of writing, Bitcoin is priced at $97,360, down 4% on the weekly timeframe.
Featured image from DALL-E, chart from TradingView.com