The remarks made by a popular executive from a Bitcoin development company, advocating for large financial institutions to take custody of Bitcoin, disappointed the cryptocurrency community.

MicroStrategy CEO Michael Saylor is now at the center of strong criticisms after saying that it would be better for Bitcoin to be in the custody of “too big to fail” banks than self-custody.

The Contentious Remark

Saylor, in a podcast interview, dissuaded investors and traders from the Bitcoin self-custody approach while putting forward the idea of custodianship through large financial institutions like banks.

He believes that large and established financial institutions can better serve Bitcoin holders because they are designed to secure financial assets.

In the said interview, Saylor debunked the possibility of any government seizure of Bitcoin as a “trope”, saying that the risk of seizure increases when the crypto is being controlled by “a bunch of crypto-anarchists” who discard government authority and do not acknowledge taxes and reporting requirements.

Vitalik Buterin didn't like Michael Saylor's Bitcoin comments. Illustration: Darren Joseph; Photos: Shutterstock

He explained that unlike these “crypto-anarchists”, financial institutions follow legal and tax obligations, arguing that it lessens the chances of any government intervention.

Many analysts in the cryptocurrency space were surprised with Saylor’s stance and they find it hard to swallow the concept the executive is pushing.

BTCUSD trading at $66,265 on the 24-hour chart: TradingView.co

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Author: Christian Encila