The Philippine Congress is considering a proposal that would allow the country’s central bank to create a strategic reserve of 10,000 Bitcoin, potentially making it one of the first in Southeast Asia to recognize Bitcoin as a strategic asset.
A bill in the House of Representatives introduced by Representative Migz Villafuerte from Camarines Sur in June generated headlines on Thursday, as it seeks to require the Banko Sentral ng Pilipinas (BSP), the nation’s central bank, to acquire 2,000 Bitcoin (BTC) each year over a five-year period.
The proposal, termed the “Strategic Bitcoin Reserve Act,” intends to compel the BSP to acquire 10,000 Bitcoin valued at $1.1 billion based on current market rates. According to the bill, these assets would be secured in a trust for a minimum of 20 years, prohibiting any selling, swapping, or disposal unless for the purpose of repaying government debt.
“This representation believes it is crucial for the Philippines to stockpile strategic assets like BTC to address significant national interests, such as ensuring financial stability,” Villafuerte stated, emphasizing the need for Congress to draft new legislation to diversify the nation’s assets for financial security.
Philippine bill introduces “Bitcoin Purchase Program”
The lawmaker referred to Bitcoin as digital gold, highlighting its average annual growth rate of 40% over the last five years along with its recent peak values.
He emphasized the necessity for the Philippines to “capitalize” on the rising significance of cryptocurrency in global markets, pointing to El Salvador and other countries that are examining and adopting Bitcoin reserve strategies.
The Strategic Bitcoin Reserve Act would require the central bank to implement a Bitcoin Purchase Program.
It would obligate the BSP to hold the asset for at least 20 years before evaluating the decision to retain or sell it.
Additionally, the central bank would be mandated to maintain a proof-of-reserves system. This would require the central bank governor to produce publicly accessible quarterly reports on the Strategic Bitcoin Reserve that detail holdings, transactions, and management of private keys.
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The Philippines could exceed El Salvador’s Bitcoin holdings with 10,000 BTC
If enacted, this bill could elevate the Philippines’ holdings beyond those of El Salvador and close to Bhutan. El Salvador, which purchases Bitcoin daily, currently holds 6,276 BTC (approximately $700 million), according to its Bitcoin Office.
In comparison, the Royal Government of Bhutan is reported to have 10,565 Bitcoin, valued at nearly $1.2 billion, according to data from Arkham Intelligence.
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