Michael Saylor proposed using bitcoins as bail-in when issuing mortgages.



The chairman of Strategy, Michael Saylor (Michael Saylor), proposed to the Federal Housing Finance Agency (FHFA) to allow the use of bitcoins as a bail-in when issuing mortgage loans.
The businessman stated that his initiative responds to the request of FHFA Director Bill Pulte (Bill Pulte), who planned to consider options for accounting for digital assets in assessing the creditworthiness of borrowers. The Strategy model involves the creation of cryptocurrency reserves, and they could serve as collateral. The same applies to any borrowers with large bitcoin reserves, explained Saylor.

"We have developed a Bitcoin-based lending model that takes into account the loan term, collateral coverage, price, and volatility of Bitcoin," said Michael Saylor.

If the model receives support from the FHFA, it could set a precedent for broader use of cryptocurrencies in lending and could act as a catalyst for increasing trust in Bitcoin as a long-term investment tool, believes the head of Strategy.

Earlier, Saylor stated that the price of Bitcoin could reach $13 million by 2045.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned