Philippines Proposes Establishment of Strategic Bitcoin Reserve
In a significant move towards bolstering economic resilience, Representative Migz Villafuerte of the Philippines has proposed House Bill 421, aiming to establish a strategic Bitcoin (BTC) reserve. This groundbreaking proposal assigns the Bangko Sentral ng Pilipinas (BSP) the task of acquiring 10,000 BTC over the next five years, marking a pivotal step in the country’s financial strategy.
Strategic Bitcoin Reserve Initiative: A Vision for Financial Security
The proposed legislation outlines a comprehensive plan for the BSP to accumulate a national Bitcoin reserve. The primary objective is to enhance financial security by diversifying the country’s monetary assets. Bitcoin’s remarkable performance over recent years has solidified its status as a reliable store of value, evident from its peak value exceeding $124,000 before experiencing a minor correction.
Advertisement Banner
According to House Bill 421, the BSP would systematically purchase 2,000 BTC annually, with the goal of amassing a total of 10,000 BTC within a five-year timeframe. These assets would be held for a minimum of 20 years, contributing to long-term debt stability. Representative Villafuerte elaborated on the rationale behind the proposal:
“It is crucial for the Philippines to accumulate strategic assets like Bitcoin to safeguard vital national interests, including financial stability.”
During the designated 20-year holding period, the BTC in the reserve cannot be sold, exchanged, or auctioned, except for debt reduction purposes. One year before the term concludes, the BSP governor is required to present recommendations on whether to maintain the reserve or initiate a phased sale. Post-holding period, the reserve may be incrementally reduced, with sales restricted to no more than 10% of the total holdings every two years.
The bill emphasizes transparency by mandating oversight from the Monetary Board (MB) and requiring the BSP to provide quarterly updates on the Bitcoin reserve.
Global Momentum for Strategic Bitcoin Reserves
In his address, Villafuerte highlighted the global trend of nations exploring the establishment of strategic Bitcoin reserves. Notably, the United States has been actively working on developing its BTC reserve, following the political shift with Donald Trump’s re-election in November 2024.
Taking cues from the US, several countries have expressed interest in creating their own sovereign BTC reserves. Earlier this year, Chilean lawmakers proposed a similar initiative for their nation. Similarly, Pakistan’s Minister for Crypto and Blockchain announced the country’s inaugural strategic BTC reserve in June. Bhutan, another South Asian nation, has already accumulated substantial Bitcoin reserves.
Brazil’s Vice President’s chief-of-staff also acknowledged the necessity of acknowledging Bitcoin as a legitimate monetary network, reflecting the growing global adoption of cryptocurrency. Currently, Bitcoin is trading at $112,420, reflecting a slight decrease of 0.7% in the past 24 hours.
As countries continue to explore the potential of Bitcoin reserves, the Philippines’ proposal represents a significant step in aligning with the global financial landscape, potentially setting a precedent for other nations to follow.
Commitment to Editorial Excellence
At Bitcoinist, our editorial process is dedicated to delivering meticulously researched, accurate, and unbiased content. We adhere to strict sourcing standards, ensuring each publication undergoes rigorous review by our team of leading technology experts and experienced editors. This commitment guarantees the integrity, relevance, and value of our content for our audience.
“`
This version of the text is restructured to be more SEO-friendly, with enriched language, additional context, and increased word count for enhanced value.
