Filipino lawmaker Representative Migz Villafuerte has introduced House Bill 421, which seeks to establish a strategic Bitcoin (BTC) reserve for the Philippines. The bill tasks the Bangko Sentral ng Pilipinas (BSP) with acquiring 10,000 BTC over the next five years.
Philippines Politician Floats Strategic Bitcoin Reserve Bill
Under the proposal, the BSP would be responsible for building a national Bitcoin reserve aimed at strengthening financial security by diversifying the country’s monetary assets. Bitcoin’s performance over the past year has reinforced its reputation as a store of value, with the digital asset hitting an all-time high of more than $124,000 before retreating slightly.
House Bill 421 recommends that the BSP purchase 2,000 BTC annually, targeting a total of 10,000 BTC within five years. These holdings would be locked in for a minimum of 20 years to provide long-term debt stability. Villafuerte explained:
It is vital for the Philippines to stockpile strategic assets such as BTC to serve important national interest such as providing financial stability, among others.
During the 20-year holding period, none of the BTC in the reserve may be sold, swapped, or auctioned except to reduce government debt. One year before the term expires, the BSP governor must provide recommendations on whether to keep the reserve or allow gradual sales.
After the minimum holding period, the reserve may be reduced. However, sales will remain capped at no more than 10% of total holdings every two years.
The bill calls for oversight by the Monetary Board (MB) to ensure transparency. It also requires the BSP to include updates on the Bitcoin reserve in its quarterly reports.
Strategic BTC Reserve Trend Picks Momentum
In his speech, Villafuerte cited examples of other countries exploring options of establishing a strategic Bitcoin reserve. For instance, the US government is actively working on developing its BTC reserve, following Donald Trump’s victory in the November 2024 presidential election.
Following in the US’ footsteps, multiple countries have expressed willingness to create their own sovereign BTC reserves. Earlier this year, several Chilean lawmakers proposed the creation of a strategic Bitcoin reserve for the South American country.
In the same vein, Pakistan’s Minister for Crypto and Blockchain announced in June the creation of the country’s first strategic BTC reserve. Another South Asian country, Bhutan, has already stockpiled huge quantities of Bitcoin.
Similarly, Brazil’s chief-of-staff to the Vice President said earlier this year that the country can no longer afford to ignore the rising global adoption of the Bitcoin protocol as a reliable monetary network. At press time, BTC trades at $112,420, down 0.7% in the past 24 hours.
Featured image from Unsplash.com, charts from World Population Review and TradingView.com
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