In the face of widespread backlash from the cryptocurrency sphere, the founder of MicroStrategy, Michael Saylor, has retracted his previous statements suggesting that major banks should oversee the custody of Bitcoin.
This reaction arose due to ongoing worries that such a decision could result in centralization and heighten the possibility of government interference.
Revising his Previous Stance
Responding to these apprehensions, Saylor redefined his stance, emphasizing that individuals and organizations should have the independence to choose how they store and handle their Bitcoin holdings.
In a post dated 23rd October on X, Saylor expressed,
“I advocate for self-custody for those who are willing and able, the right to self-custody for all, and the freedom to select the form of custody and custodian for individuals and institutions worldwide. #Bitcoin benefits from all types of investments made by various entities and should be open to everyone.”
Saylor, formerly praised for his personal Bitcoin strategy and the significant investments made by his company MicroStrategy, is now facing a dent in his reputation.
Unfamiliar with the recent events, Saylor recently recommended that Bitcoin holders entrust large, “too big to fail” financial institutions with their assets, claiming that these entities are suitably equipped to securely manage assets like Bitcoin.
This statement directly challenged Saylor’s previous standpoint, with Ethereum co-founder Vitalik Buterin questioning the logic of relying on centralized institutions in an environment founded on decentralization.
Buterin remarked,
“I am confident in saying that I find Saylor’s remarks to be completely ridiculous. He appears to explicitly advocate for a regulatory capture approach to safeguarding crypto.”
Diverse Community Responses
Despite efforts to address the recent controversy, Saylor’s reputation seems to have been tarnished.
Reflecting on this, a crypto analyst noted,
Adding to the dialogue was another X user, Joel Valenzuela, who commented,
“A complete surrender. Your true colors have been revealed.”
Clearly, this fallout has sparked concerns regarding whether his previously solid pro-Bitcoin image can be fully restored.
However, many individuals stood in support of Saylor.