Key Takeaways
- Vitalik Buterin criticized Michael Saylor's pro-bank custody stance.
- Saylor suggested that Bitcoin holders use 'too big to fail' banks for custody.
- Community members argue that self-custody is key to protecting Bitcoin’s decentralized nature.
Ethereum co-founder Vitalik Buterin has criticized Michael Saylor’s suggestion that Bitcoin holders should rely on major banks for custody, calling the idea “batshit insane.”
Buterin’s comment came in response to an Oct. 22 post from Casa’s chief security officer, Jameson Lopp, who emphasized the importance of self-custody for Bitcoin holders.
Banks
Saylor, the founder of MicroStrategy, argued that Bitcoin holders should trust “too big to fail” banks to safeguard their assets.
This marks a notable shift from his earlier support for self-custody, and has drawn widespread criticism from the crypto community.
Saylor’s remarks suggested that regulated entities like BlackRock and Fidelity could provide better protection, with law enforcement backing their custodial operations.
Buterin
Buterin, however, countered that Saylor seems to be advocating for regulatory capture, saying:
There’s plenty of precedent for how this strategy can fail.
Buterin added that such an approach contradicts Bitcoin’s decentralized ethos.
Others join
Other notable figures joined the backlash, including ShapeShift founder Erik Voorhees, who stressed that self-custody is vital to prevent centralization and corruption.
Lopp also underscored the critical role of self-custody in securing the Bitcoin network.
Saylor’s comments come at a time when trust in centralized institutions remains low, particularly after the collapse of FTX, where many users lost Bitcoin held on the exchange.
