Philippine lawmakers are evaluating a proposed bill that would enable the central bank to maintain a strategic reserve of up to 10,000 BTC.
Summary
- House Bill 421 mandates the Philippine central bank to acquire Bitcoin over a span of 5 years.
- Upon approval, the Philippines would become the first Southeast Asian nation to formalize such a reserve.
House Bill 421, known as the Strategic Bitcoin Reserve Act, was introduced to the House of Representatives by Congressman Miguel Luis Villafuerte. He described Bitcoin as a “strategic asset” to enhance the Philippines’ financial security.
Villafuerte’s initiative proposes a sovereign Bitcoin reserve that would not derive from seizures but through planned accumulation.
The proposal states that the Philippine central bank would acquire 2,000 Bitcoin annually for five years, reaching a total of 10,000 Bitcoin, securely stored under rigorous supervision.
Once established, the reserve is to remain untouched for 20 years, with exceptions only for national debt obligations. The bill imposes strict legal limits on the central bank, disallowing any sale, swap, or disposal of the assets during this period unless tied to sovereign debt payments.
The bill also establishes a framework for transparency and accountability. It proposes a proof-of-reserves system, requiring the BSP governor to publish quarterly reports that disclose the reserve’s Bitcoin holdings, wallet addresses, and access to private keys.
If enacted, this reporting would position the Philippines at the forefront of sovereign digital asset oversight, providing a level of transparency not commonly seen in government-held crypto reserves.
Moreover, the legislation includes provisions for post-lockup regulations. Following the 20-year term, any sale of the Bitcoin reserve would be limited to a maximum of 10% within any two-year timeframe.
Early mover advantage
If this bill progresses, the Philippines would become the first Southeast Asian nation to formally legislate the establishment of a sovereign Bitcoin reserve. This distinction could enhance the country’s reputation in global cryptocurrency discussions.
“Bitcoin offers emerging markets like the Philippines a chance to navigate around Western financial systems and protect themselves from declining fiat currencies,” stated Kadan Stadelmann, Chief Technology Officer at Komodo Platform, in an interview with crypto.news.
“The Philippines has entered the Bitcoin arms race, and the bill reinforces Bitcoin as digital gold. However, the lack of legal status for Bitcoin might pose challenges for the bill’s approval,” he added.
Nonetheless, Stadelmann is optimistic about the potential advantages of a Bitcoin reserve, highlighting Bitcoin’s appreciation capability and its potential to enhance financial inclusion in a country with a considerable unbanked population.
While nations like El Salvador have garnered attention for recognizing Bitcoin as legal tender, the Philippine approach is more cautious and systematically focused on long-term accumulation and fiscal protection rather than immediate retail access.
With 10,000 Bitcoin, the Philippines would surpass El Salvador’s current reserve of approximately 6,276 BTC and near Bhutan’s reported holdings of over 10,500 BTC.
This proposal arrives as the Philippines strengthens its stance on cryptocurrency regulation. As reported by crypto.news, earlier this month, the Securities and Exchange Commission cautioned ten major crypto exchanges, including OKX, Bybit, and KuCoin, for operating without proper registration under new Crypto Asset Service Provider regulations.
