Michael Saylor on “$10 Trillion Opportunity” for American Banks

Michael Saylor, co-founder and executive chairman of MicroStrategy, has discussed the opportunity for the U.S. to make the dollar ubiquitous by creating a regulatory framework that allows American banks to issue their treasury-backed stablecoins.

In an interview on CNBC, Saylor emphasized that the introduction of a digital dollar through U.S. banks offers an unprecedented opportunity to position the dollar as the world’s leading digital currency. He argued that the current negative attitude of the government towards crypto and the lack of clear regulation has led to the dominance of offshore companies, such as Tether, in issuing dollar stablecoins.

With a new regulatory framework, however, U.S. banks could play a key role in issuing dollar-backed stablecoins, which Saylor believes could open up an international market of $10 trillion. This would not only increase global demand for the U.S. dollar but also stimulate demand for U.S. government bonds, which would support the value of these stablecoins.

The benefits of American stablecoins

Saylor pointed out that the demand for the U.S. dollar is already huge in countries such as Russia, China, Africa, and South America, where people often do not have access to U.S. bank accounts. Many of these users turn to offshore stablecoins like Tether to use dollars on their mobile phones.

By enabling U.S. banks to issue such stablecoins, the U.S. could regain control over this market and reap the economic benefits. Saylor proposed:

“We don’t just want $150 billion in offshore-issued dollar stablecoins; we want $10 trillion in stablecoins issued by U.S.-regulated banks, backed by U.S. government bonds and stored in the U.S.”

The way forward: A digital asset framework

Saylor emphasized that all that is needed to realize this vision is a clear digital asset framework that can bring this industry to life. He sees this as a crucial step to strengthen the dollar as a global reserve currency in an increasingly digital economy.

Previously, Saylor also proposed a controversial strategy to sell the U.S. gold reserves and acquire a portion of the bitcoin stock. He called this a “strategic bitcoin reserve,” which could give the U.S. a head start in the emerging digital economy.

With his vision, Saylor continues to advocate for innovative financial strategies that could position the U.S. as a global leader in the digital asset space.