A Philippine lawmaker has proposed a new bill to create a government-run strategic Bitcoin (BTC) reserve, which would accumulate a total of 10,000 BTC, with the funds used only to pay down national debt. Such a move positions the Philippines among the first in Southeast Asia to embrace Bitcoin as a strategic asset.
Bill Charts Path To 10,000 BTC Reserve
House Bill 421, introduced by Rep. Miguel Luis R. Villafuerte, proposes that the Bangko Sentral ng Pilipinas (BSP) — the country’s central bank — purchase 2,000 Bitcoin annually over five years for a total of 10,000 BTC.
“The State shall promote and maintain economic prowess, including monetary stability and the convertibility of the peso, especially in times of crisis. With the increasing role of cryptocurrency in the world’s financial system, it is imperative to enact measures aimed at diversifying our assets to ensure financial security,” the lawmaker wrote.
Villafuerte’s legislation specifies that the holdings would be locked in cold storage for a minimum of 20 years. During that period, BTC may only be sold or swapped to pay off outstanding government debt. Once the 20 years elapse, the central bank governor would be restricted to selling no more than 10% of the assets over any two-year period.
“The increasing significance of BTC in ensuring financial and economic prowess across continents makes it imperative for the country to take significant legislative measures,” the bill reads.
The bill further mandates the Bangko Sentral ng Pilipinas to establish geographically distributed cold-storage facilities across the nation. To ensure resilience, these facilities would be audited quarterly via public cryptographic attestations and verified by independent third parties.
If passed, the bill would add the Philippines to a growing list of countries, the likes of El Salvador and Bhutan, that have adopted Bitcoin as a strategic national reserve asset. The United States and China are among the biggest sovereign holders of Bitcoin, with their reserves primarily comprising seized assets.
Per Bitbo data, nation-states across the globe currently own approximately 517,296 BTC, equivalent to 2.463% of Bitcoin’s total 21 million supply.
