MicroStrategy CEO Michael Saylor believes traditional financial markets are not quite ready for bitcoin-backed bonds.
In an interview with Bloomberg, he said he would like to see the day when bitcoin bonds are sold as mortgage-backed securities.
Earlier, El Salvador postponed the issuance of “Volcano Bond” bitcoin bonds. According to El Salvadoran Finance Minister Alejandro Zelaya, the decision to postpone the bond issue was due to general financial uncertainty in the global market caused by the war in Ukraine.
Also this week, MicroStrategy took out a bitcoin loan secured by its BTC reserve.
Saylor noted that El Salvador’s bonds are more risky than his company’s loan.
“This is a hybrid sovereign debt instrument, not a pure bitcoin treasury play. This instrument has its own credit risk and has nothing to do with bitcoin risk itself,” he added.
Saylor added that he remains optimistic about the long-term potential of bitcoin bonds and added that, for New York, it would be a good idea to use bitcoin as a debt instrument.
“New York could issue $2 billion worth of debt and buy $2 billion worth of bitcoins – the yield from bitcoin is 50% or more, the debt would be worth 2% or less,” he concluded.