Bitcoin evangelist Pierre Rochard claims that strategy co-founder Michael Saylor is currently outperforming Federal Reserve Chair Jerome Powell. Rochard believes the Fed needs to own the largest cryptocurrency.
“Full Reserve Banking”
The Fed operates a fractional reserve system that allows banks to keep only a small portion of their deposits while lending the rest.
The interest rate paid by the Fed is currently 4.5%.
Therefore, Rochard argues that Fed systems have a lot of risk while offering relatively low returns.
In the meantime, STRC, the preferred stock of STRC, is supported by Bitcoin Reserve. The strategy is currently the world’s largest cryptocurrency owner, totaling 636,505 BTC. The strategy’s balance sheet increased by about 580% due to Bitcoin exposure.
Rochard argues that this actually represents a “complete reserve bank” for the huge Bitcoin Holdings of strategy.
The strategy recently increased its STRC dividend to 10%. This is significantly higher than the above 4.5%.
Fed does not own Bitcoin
Rochard said that after commenting on the soundness of the Strategic Treasury Reserve Strategy, the Fed itself should retain Bitcoin.
But before, Powell It was rejected The idea of holding Bitcoin, claiming that it is not possible due to legal restrictions. He further said the Fed is not looking for changes to the law that would allow that.
