Vitalik Buterin Rejects Michael Saylor’s Bitcoin Custody Strategy  

• Vitalik Buterin strongly disagrees with Michael Saylor’s suggestion that banks should act as custodians for Bitcoin.  
• Several other crypto figures, including Jameson Lopp, support Buterin’s stance on self-custody over third-party reliance.  
• Saylor’s recent comments on Bitcoin custody appear to contradict his earlier stance advocating self-custody in the crypto space.

Ethereum co-founder Vitalik Buterin has expressed strong disagreement with MicroStrategy chairman Michael Saylor’s views on Bitcoin custody. In a post on X, Buterin called Saylor “batshit insane” after Saylor’s recent comments about relying on major financial institutions for the safekeeping of digital assets. Buterin rejected Saylor’s approach, which advocates for regulated entities holding Bitcoin, citing the potential dangers of regulatory capture.

Buterin Challenges Saylor’s Bitcoin Custody Views

Saylor’s interview with financial markets reporter Madison Reidy raised the ire of Vitalik Buterin. During the interview, Saylor advocated for large regulated banks to take custody of the bitcoin to enhance on security and regulation. However, responding to such fears, Carney and other proponents of crypto like Buterin have claimed that such implementation is in total violation of the ideals of decentralization of the cryptocurrencies.

Several other prominent figures in the crypto space, including Jameson Lopp, Casa’s chief security officer, and Erik Voorhees, founder of ShapeShift, echoed Buterin’s concerns. They believe that promoting third-party custodians for Bitcoin could have negative implications, as it shifts control away from individuals and into the hands of large financial institutions.

Saylor’s Shift from Self-Custody

Notably, Saylor’s recent remarks appear to contradict his earlier stance on self-custody. In a 2022 interview with Blockware, Saylor supported the idea of individuals and small businesses holding their private keys rather than relying on banks or exchanges. His earlier position came shortly after the collapse of FTX, which led to billions in losses for users who left their Bitcoin on the platform.

Concerns Over Regulatory Capture

The concept of regulatory capture, where public entities could eventually dominate the crypto space, remains a concern for critics like Buterin. They fear that relying on major financial institutions would grant too much control to traditional banks, going against the decentralized ethos of Bitcoin.

Saylor’s recent remarks continue to draw debate within the crypto community, as they highlight the ongoing discussion about the best ways to ensure security in the growing digital asset landscape.