As Bitcoin (BTC) becomes increasingly trending between investors around the globe, MicroStrategy co- founder and executive chairman Michael Saylor has pointed out the complications with self-custody and expressed his belief that there will come a time when all the major banks will offer Bitcoin (BTC) custody services.
Nonetheless, Saylor stated that if Bitcoin (BTC) was to become the solution for everyone on the planet, then it was inevitable that banks, corporations, governments, and non- profits all need Bitcoin, as he informed Kitco News’ Michelle Makori in an interview published on May 22.
Complication of self-custody
Reports by him, “the City of New York is not going to allow the mayor to walk around with Bitcoin (BTC) in personal custody, and it’s not really practical for the Defense Department of the United States of America to let one general have all the Bitcoin.”
With this in mind, Saylor believes that:
“Large institutions, churches, corporations, and the like, they’re going to need an infrastructure of custodians and banks, and so I do think there will be a time when all the big banks will custody Bitcoin.”
Furthermore, he claimed that some groups of people simply could not be reasonably expected to self-custody Bitcoin, such as children who inherited it or elderly people with dementia, in which case an institution like a trust company would have to step in that would manage their Bitcoin (BTC) possessions for them.
Bitcoin (BTC) in traditional institutions
In addition of that, Saylor highlighted that “if you believe nation- states will continue to exist, then you’re going to have Bitcoin (BTC) held by institutional sources, they’re going to have to have a bank to hold it for them.” Therefore:
“I think that Bitcoin (BTC) is inevitably going to permeate all of the traditional institutions in the world in different ways for different reasons – economic reasons, physical reasons, political reasons.”
As a reminder, enterprise business intelligence (BI) software vendor MicroStrategy has so far purchased over 140,000 BTC, which some, including Hal Press, the founder and CEO of the cryptocurrency-focused a fund of financing North Rock Digital, have criticized as a “comically stupid” strategy.
In the meantime, the flagship decentralized finance (DeFi) investment was at the time of publication changing hands at the price of $27,323, up 1.72 percent on the day and gaining 0.41 percent across the previous week, as it looks to reverse the losses of 1.70 percent accumulated in the previous 30 days, as per data retrieved by Finbold on May 23.
Featured image via Lex Fridman YouTube
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