The Congress of the Philippines is considering a proposal that could lead the nation’s central bank to establish a strategic reserve of 10,000 Bitcoin, positioning it as one of the first in Southeast Asia to treat Bitcoin as a strategic asset.
A bill introduced by Camarines Sur Representative Migz Villafuerte in June made headlines recently, as it seeks to require the Banko Sentral ng Pilipinas (BSP), the country’s central bank, to acquire 2,000 Bitcoin (BTC) each year over five years.
The bill, dubbed the “Strategic Bitcoin Reserve Act,” aims to direct the BSP to acquire 10,000 Bitcoin, valued at approximately $1.1 billion at current market rates. According to the bill, the reserve would be secured in a trust for a minimum of 20 years, preventing the coins from being sold, traded, or otherwise disposed of, except when settling government debt.
“This representation believes it is crucial for the Philippines to accumulate strategic assets like BTC to serve significant national interests, such as providing financial stability,” Villafuerte remarked, emphasizing the need for Congress to draft new legislation to diversify the nation’s asset base for better financial security.
The Philippine bill suggests a “Bitcoin Purchase Program”
The legislator characterized Bitcoin as digital gold, referencing its annual growth rate of 40% over the past five years and its recent record highs.
He stressed that the Philippines should “capitalise” on the growing significance of crypto in global markets, drawing comparisons to El Salvador and other countries that are already exploring and implementing Bitcoin reserve strategies.
The Strategic Bitcoin Reserve Act would require the central bank to set up a Bitcoin Purchase Program.
This program would obligate the BSP to maintain the asset for at least 20 years before deciding whether to continue holding or liquidate it.
Additionally, the bill would mandate a proof-of-reserves system at the central bank. This would require the central bank governor to publicly release quarterly reports on the Strategic Bitcoin Reserve, detailing holdings, transactions, and management of private keys.
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The Philippines could surpass El Salvador in Bitcoin holdings
If passed, this bill could elevate the Philippines above El Salvador and close to Bhutan in Bitcoin holdings. El Salvador, which purchases Bitcoin daily, holds a total of 6,276 BTC (around $700 million), according to its Bitcoin Office.
On the other hand, the Royal Government of Bhutan possesses 10,565 Bitcoin, valued at nearly $1.2 billion, according to data from Arkham Intelligence.
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