Michael Saylor, the Executive Chairman of Strategy, is advocating for a radical transformation of the global banking system by urging nation-states to build Bitcoin-backed digital banks. Speaking at the Bitcoin MENA event in Abu Dhabi on December 9, 2025, Saylor presented his vision for regulated financial institutions primarily backed by Bitcoin reserves, rather than traditional fiat instruments.
Saylor's proposal centers around a new type of digital bank built on three core components: a large, regulated reserve of Bitcoin held by the bank; a system of tokenized credit instruments backed by Bitcoin collateral; and deposit products that combine crypto collateral and fiat liquidity buffers. These banks would offer high-yield, low-volatility accounts, supported by over-collateralized Bitcoin (BTC) reserves. He argues that such a system could attract massive capital flows worldwide, potentially drawing between $20 trillion and $50 trillion in deposits, positioning a country as a global hub of digital finance.
In Saylor's model, deposit accounts would be partially backed by Bitcoin-based assets, enabling higher yields than traditional savings products while maintaining a structured reserve ratio to manage volatility. He suggests structuring accounts with approximately 80% digital credit instruments, 20% regular currency, and a 10% reserve buffer to mitigate volatility. The digital credit layer would be backed by Bitcoin reserves with approximately 5:1 overcollateralization. Saylor believes this framework would provide attractive yields due to Bitcoin's underlying performance and scarcity.
Saylor has long championed Bitcoin as digital property, advocating for its inclusion in reserves akin to gold. He posits that a system backed by provably scarce assets eliminates inflation risk and enhances long-term stability. He also believes that corporate participation is now essential for Bitcoin's long-term monetization.
Saylor's vision has sparked debate. While some view it as a bold step towards integrating crypto assets into large-scale financial systems, others express skepticism, particularly regarding Bitcoin's volatility and the ability to maintain stability during massive withdrawals. One former bond trader called Saylor's moves "folly," questioning the feasibility of maintaining a peg during a panic.
Despite the concerns, Saylor remains steadfast in his conviction. He argues that traditional savings instruments offer minimal returns in many countries, and Bitcoin-backed deposit systems could provide attractive yields. He even went so far as declaring these bank accounts to be a technological achievement on the scale of nuclear fusion reactors.
MicroStrategy, under Saylor's leadership, has become a prominent example of a company holding substantial Bitcoin reserves. As of December 2025, Strategy holds 660,624 BTC, acquired for approximately $49.4 billion at an average price of $74,696 per bitcoin. Saylor believes that Strategy's accumulation is driving Bitcoin toward a $10 million valuation.
Saylor's proposal for Bitcoin-backed banks represents a significant shift towards integrating crypto assets into the global financial system. If adopted, this model could reshape Bitcoin's role in the world economy and usher in a new era of digital banking.
