Global market is not quite ready for Bitcoin backed Bond, says Michael Saylor
MicroStrategy’s chief executive officer shared his point of view on the current stance of the global market on Bitcoin backed securities and bond.
Microstrategy is a business intelligence software firm, which is highly popular in the crypto industry because of its bullish support for the Bitcoin as the only hope for the future of businesses. Under the leadership of Micheal Saylor, the company is continuously adding Bitcoin to its balance sheet.
Recently Micheal Saylor, CEO of Microstrategy, appeared in an interview with Bloomberg. In the interview, Michael talked about the rapid adoption of Bitcoin among retail traders but he noted that such crazy interest is not boosted by the such players or businesses.
Micheal said:
“I’d love to see a day where people eventually sell Bitcoin-backed bonds like mortgage-backed securities. The market is not quite ready for that right now. The next best idea was a term loan from a major bank.”
By considering the $1 billion Bitcoin bond initiative of El Salvador, which is under development, Micheal said that it is opposite to the risks associated with bitcoin and there is no relationship between Bitcoin bond and pure Bitcoin.
“That’s a hybrid sovereign debt instrument as opposed to a pure Bitcoin-treasury play. That has its own credit risk and has nothing to do with the Bitcoin risk itself entirely.”
El Salvador’s Bitcoin bond
The $1 billion worth Bitcoin bond plan of El Salvador was proposed late last year and it was scheduled to launch for the public by March of this year but unfortunately due to some critical geopolitical situations, El Salvador postponed it.
Reportedly the fund collected by bitcoin bond will be used by the government to invest directly in Bitcoin and in the development of Bitcoin city.
Interestingly it is worth noting that the Bitcoin Bond of El Salvador is directly related to bitcoin because everything will depend upon the percentage outcomes from Bitcoin and also development results from “Bitcoin city”, but here Microstrategy CEO indirectly argued that Bitcoin Bond is independent of Bitcoin.
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