Michael Saylor, the most loyal believer in Bit and the chairman of the Bit-holding giant MicroStrategy, today published a "digital asset framework" on the X platform, stating that formulating a strategic digital asset policy can not only consolidate the position of the US dollar, ease the pressure of national debt, but also enable the US to occupy a global leadership position in the digital economy of the 21st century - promoting corporate development, driving economic growth, and creating trillions of dollars in economic value.
Michael Saylor: Establishing a Bit reserve to offset national debt
In this digital asset framework, Michael Saylor discusses the opportunities and the US's leadership position in digital assets from five core aspects. In the "opportunity" aspect, he mentioned that establishing a Bit reserve could create $16 trillion to $81 trillion in wealth for the US Treasury, thereby providing a way to offset national debt. In addition, he proposed the following three core opportunities:
- The US dollar becoming the global reserve digital currency: Driving the digital currency market from $25 billion to $10 trillion, creating huge demand for US debt.
- Expansion of the digital capital market: The global digital capital market is expected to grow from the current $2 trillion to $280 trillion, with US investors being the main beneficiaries.
- Digital asset leadership position: Driving the market size of digital assets (not limited to Bit) from $1 trillion to $590 trillion, making the US the leader in this industry.
Other digital asset framework issues
In addition to "opportunities", Michael Saylor's framework also covers the following key issues:
- Asset classification: Defining digital asset types, including "digital commodities" (such as Bit), "digital securities", "digital currencies", "digital tokens", "digital Non-Fungible Tokens (NFTs)", and "digital Asset-Backed Tokens (ABTs)" linked to physical assets.
- Legality: Emphasizing the establishment of the rights and responsibilities of issuers, exchanges, and holders, including fair disclosure, asset protection, and compliance with laws, to ensure the trust and integrity of market participants.
- Practicality: Simplifying the compliance process for digital assets, reducing bureaucracy and costs, supporting market-oriented innovation, and improving efficiency and innovation through standardized disclosure and industry-led compliance.
- Vision: Promoting the "Renaissance" of the US capital market, reducing issuance costs, expanding market access, and enabling more small and medium-sized enterprises, artists, and brands to raise funds through tokens, creating trillions of dollars in value.
CryptoQuant founder: Using Bit to offset US debt is feasible, but with challenges
Whether Bit reserves can be used to offset a country's debt has been widely discussed. On this issue, Ki Young Ju, the founder of CryptoQuant, posted on the X platform that incorporating Bit into strategic reserves to offset US debt is a feasible approach. He said:
Over the past 15 years, Bit has attracted $790 billion in capital inflows, driving its market capitalization to exceed $2 trillion. This year, it has added $1 trillion in market value with just $352 billion in inflows.
However, Ki Young Ju also pointed out that using a more volatile asset like Bit to offset US dollar debt may face the challenge of a lack of consensus among creditors, compared to gold or the US dollar.
For Bit to gain more widespread acceptance in the market, it needs to have global recognition and national-level authority like gold. Establishing a "Strategic Bit Reserve (SBR)" may be a symbolic first step.
Ki Young Ju added that currently, 70% of US debt is held domestically, so if the government defines Bit as a strategic asset and plans to purchase 1 million Bits by 2050, it could offset up to 36% of the debt.
Although the remaining 30% of foreign creditors may not accept this plan, the plan does not rely on using Bit to settle all debt, making the strategy somewhat feasible.
