Michael Saylor Clarifies Stance on Bitcoin Custody Amidst Community Rebound

Coin World Reports: Michael Saylor, who advocated for large banks to oversee Bitcoin custody, faced strong opposition and subsequently changed his stance. Due to the increasing participation of institutions, concerns about the centralization risk of Bitcoin have been growing. After facing widespread backlash from the cryptocurrency community, Michael Saylor, the founder of MicroStrategy, retracted his statement that large banks should oversee Bitcoin custody. This was because people have been worried that this move could lead to centralization and increase the risk of government intervention. Michael Saylor took a step back from his previous position. Addressing these concerns, Saylor clarified his stance, stating that individuals and institutions should have the right to decide how to store and manage their BTC assets. In a post on October 23rd, Saylor stated, “I support those willing and capable of self-custody. Everyone has the right to self-custody and the freedom for individuals and institutions worldwide to choose their preferred form of custody and safekeeping. #Bitcoin benefits from investment in all forms by all types of entities and should be welcoming to all.” Saylor was previously known for his personal Bitcoin strategy and his company MicroStrategy’s large-scale investments, and now his reputation is under pressure. For those unaware, Saylor recently advocated that Bitcoin holders trust large “too big to fail” financial institutions, claiming that these entities have the ability to securely manage important assets like Bitcoin. This statement openly challenges Saylor’s position, and Ethereum co-founder Vitalik Buterin questions the wisdom of relying on centralized institutions in a space that promotes decentralization. Buterin said, “I am happy to say that I think Saylor’s statements are crazy. He seems to clearly advocate for regulatory capture to protect cryptocurrencies.” The mixed community response indicates that while Saylor attempted to address the recent controversy, his image appears to have been damaged. A cryptocurrency analyst pointed out, and another user on X, Joel Balenzuela, joined the debate, saying, “You gave in. But you showed your true colors.” Needless to say, this impact has raised concerns about whether his once firm pro-Bitcoin image can fully recover. However, many people still support Saylor.