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Saylor: Ethical, Legal Framework Needed for Bitcoin BRC-20 Uses

source-logo  cryptonewsland.com 23 May 2023 03:34, UTC
  1. Michael Saylor, MicroStrategy co-founder, discusses the possible illegality of early Bitcoin BRC-20 uses.
  2. Saylor suggests ethical and legal issuance and regulation of BRC-20 tokens on Bitcoin.
  3. Despite potential legality issues, Saylor opposes censorship of Ordinal transactions on the Bitcoin network.

A recent declaration by Michael Saylor, MicroStrategy co-founder, concerning Bitcoin BRC-20 tokens has captured the attention of the cryptocurrency world. Saylor, a known Bitcoin maximalist, hinted at potential legal concerns around the early uses of BRC-20 tokens but maintained an optimistic outlook toward their future.

BRC-20 tokens, similar to Ethereum’s Non-Fungible Tokens (NFTs), allow for the inscription of arbitrary and non-financial information on the Bitcoin blockchain through the Ordinals protocol. Recent attention has been drawn to these tokens due to soaring transaction fees and growing discussions within the Bitcoin community over network attacks and possible transaction censorship.

Source: ICODrops Twitter

Saylor, in a conversation at the Bitcoin 2023 conference, spoke about the intriguing possibility of tokenizing stocks and ETFs trading on NASDAQ, allowing individuals to take personal custody of their shares. He indicated that a scenario like this could lead to a more positive perception of BRC-20 tokens among Bitcoin enthusiasts.

However, he also warned about the potential for misuse. If BRC-20 tokens were used to issue unregistered securities, which he termed unethical and illegal, it would rightfully draw objection from the community. Saylor, therefore, underlined the importance of use case and perception in determining the legitimacy of these tokens.

While acknowledging the potential for both constructive and destructive use cases, Saylor emphasized the importance of letting the free market function. He argued against the censorship of Ordinal transactions on the Bitcoin network, even in the face of potential legal issues.

This perspective sheds light on the evolving landscape of Bitcoin and its potential role in the future of finance. It is clear that as the blockchain technology underlying Bitcoin continues to advance, so does the need for appropriate regulatory frameworks to ensure its legal and ethical use​.