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A Philippine congressman has introduced a bill proposing the establishment of a strategic Bitcoin reserve, aiming for the nation's central bank to acquire 10,000 BTC over five years. This significant move would see the digital assets locked away for a minimum of 20 years, with sales restricted to retiring government debt, positioning the Philippines to potentially join other nations in adopting Bitcoin as a national asset.
Key Takeaways
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A proposed bill in the Philippines aims to create a strategic Bitcoin reserve of 10,000 BTC.
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The Bangko Sentral ng Pilipinas (BSP) would acquire 2,000 BTC annually for five years.
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The Bitcoin reserves would be held in cold storage for at least 20 years.
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Sales of the reserve would be limited to retiring government debt.
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The bill emphasizes Bitcoin as "digital gold" and a hedge against traditional assets.
Strategic Bitcoin Reserve Act
Congressman Miguel Luis Villafuerte has put forth House Bill 421, the "Strategic Bitcoin Reserve Act." This legislation mandates the Bangko Sentral ng Pilipinas (BSP) to purchase 2,000 Bitcoin each year for five consecutive years. The accumulated 10,000 BTC would then be secured in cold storage facilities across the country for a minimum of two decades.
Rationale and Restrictions
Villafuerte stated that the increasing global significance of Bitcoin necessitates legislative action for the country's financial and economic prowess. The bill explicitly outlines that the Bitcoin reserve cannot be sold or traded for any purpose other than to pay off outstanding government debt. Even after the 20-year lockup period, the BSP governor would be restricted from selling more than 10% of the assets within any two-year span.
Global Context and National Interest
If enacted, this bill would place the Philippines among nations like El Salvador and Bhutan that have embraced Bitcoin as a strategic national asset. The proposal highlights Bitcoin's potential as "digital gold" and a hedge against traditional currencies like the U.S. dollar and assets like gold. The bill argues that stockpiling strategic assets like Bitcoin is vital for financial stability and safeguarding national interests, especially as other countries accelerate their own Bitcoin strategies.
Transparency and Oversight
The proposed legislation also includes provisions for transparency, mandating quarterly "proof-of-reserve" audits verified by independent third parties, with reports to be published online. The bill also reaffirms private property rights, ensuring individuals and businesses can continue to buy, hold, and trade Bitcoin without government interference.
Economic Landscape
As of November 2024, the Philippines' national debt had reached approximately $285 billion. Proponents of the bill believe that diversifying national reserves is crucial for financial stability. The move also comes as the Philippines continues to refine its digital asset regulations, with initiatives like the SEC's Strategic Sandbox program and the BSP's Project Agila trial for wholesale CBDC.
Sources
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Philippines proposes 10,000 BTC strategic reserve with 20-year lockup, The Block.
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Philippines Proposes Massive 10,000 Bitcoin Buy for Strategic Reserve, Yahoo Finance.
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Philippine Lawmaker Proposes $1.1B Strategic Bitcoin Reserve Act, Cointelegraph.
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