Controversial Remarks by MicroStrategy Founder Entrust Bitcoin Custody to Major Banks Instead of Storing it in Hardware Wallets

Controversial Remarks by MicroStrategy Founder Entrust Bitcoin Custody to Major Banks Instead of Storing it in Hardware Wallets

Controversial Remarks by MicroStrategy Founder Entrust Bitcoin Custody to Major Banks Instead of Storing it in Hardware Wallets

According to a report by Cointelegraph, Michael Saylor, the CEO of MicroStrategy, a US-listed company known for holding a large amount of Bitcoin, has recently faced criticism for his latest remarks. He suggested that Bitcoin should be entrusted to “too big to fail” financial institutions instead of using the self-custody services he previously advocated.

In an interview with financial market reporter Madison Reidy on October 21st, Michael Saylor stated that Bitcoin holders would not incur any losses by transferring their Bitcoin to institutions. Michael Saylor is regarded as a supporter of Bitcoin, and his statement obviously contradicts his previous stance of supporting self-custody of cryptocurrencies. Shortly after the collapse of FTX in November 2022, Michael Saylor claimed that self-custody of Bitcoin could prevent powerful custodians from becoming corrupt, saying, “In a system without self-custody, custodians accumulate too much power and may abuse it. If you cannot self-custody your Bitcoin, you cannot establish a decentralized network.”

When asked if the US government could strip Bitcoin holders of their self-custody rights, similar to the ban on gold ownership in 1933, Michael Saylor believed that anyone concerned about such a situation is a “paranoid crypto-anarchist.” “There is a lot of unnecessary fear here.” He then added that instead of relying on hardware wallets, it is better to rely on “too big to fail” banks, which are “designed to be custodians of financial assets.”

Michael Saylor’s apparent shift in self-custody stance has drawn strong criticism from many Bitcoin supporters. Sina, the founder of Bitcoin custody and security company 21st Capital, stated, “Michael Saylor’s goal is to downgrade Bitcoin to an investment plaything and prevent its use as a currency.” Simon Dixon, an OG Bitcoin supporter and author of “Bank to the Future,” speculated that Michael Saylor suddenly undermining the importance of self-custody is detrimental to MicroStrategy’s long-term plans, as the company intends to transition into a Bitcoin bank and offer mortgage loans.

However, there are also some people who support Michael Saylor’s views. Julian Figueroa, the founder and host of “Get Based,” stated that Michael Saylor’s remarks are aimed at institutions, not individuals. “Institutions have never been and will never be crypto-anarchists. Small businesses and ordinary people can have hardware wallets and sovereignty, but institutions with more than 200 employees, pension funds, or wealth funds will need Bitcoin banks.”