- Michael Saylor is reversing his position after facing backlash for advocating for big banks to oversee the custody of Bitcoin.
- Concerns are growing over Bitcoin’s risk of centralization due to growing institutional involvement.
After facing widespread backlash from the crypto community, MicroStrategy founder Michael Saylor walked back comments suggesting big banks should oversee Bitcoin (BTC) custody.
This stems from ongoing fears that such a move could lead to centralization and increase the risk of government intervention.
Michael Saylor reconsiders his previous position
Addressing these concerns, Saylor clarified his position, saying that individuals and institutions should have the autonomy to decide how they store and manage their BTC holdings.
In an October 23 article on X, Saylor said.,
“I support self-custody for those who want and can, the right to self-custody for all, and the freedom to choose the form of custody and guardianship for individuals and institutions around the world. #Bitcoin benefits from all forms of investment from all types of entities and should welcome everyone.
Saylor, once celebrated for his personal Bitcoin strategy and the massive investments made by his company MicroStrategy, is now seeing his reputation put to the test.
For those unaware, Saylor recently advocated for BTC holders to trust large “too big to fail” financial institutions, saying these entities are well-equipped to safely manage large assets like Bitcoin.
This remark openly questioned Saylor’s position, with the co-founder of Ethereum Vitalik Buterin questioning the wisdom of relying on centralized institutions in a space built on decentralization.
Buterin said:
“I will be happy to say that I think Saylor’s comments are completely insane. He appears to explicitly advocate for a regulatory capture approach to protecting crypto.
Mixed community reaction
Despite her attempts to resolve the recent controversy, Saylor’s image appears to have taken a hit.
Making the same point, a crypto analyst pointed out:
Source: Max Keizer/X
Another user X has joined the fray. Joel Valenzuela who said,
“Surrender. But you have shown your true colors.
Needless to say, the fallout has raised concerns about whether its once strong image in Bitcoin’s favor can fully recover.
However, many came out to support Saylor.