The Congress of the Philippines is considering a proposal that could allow the nation’s central bank to establish a strategic reserve of 10,000 Bitcoin, potentially making it one of the first in Southeast Asia to embrace Bitcoin as a strategic asset.
A House of Representatives bill submitted by Camarines Sur Representative Migz Villafuerte in June captured attention on Thursday, aiming to require the Banko Sentral ng Pilipinas (BSP), the central bank, to acquire 2,000 Bitcoin (BTC) annually over five years.
The bill, known as the “Strategic Bitcoin Reserve Act,” seeks to mandate the BSP to procure 10,000 Bitcoin valued at $1.1 billion based on current market rates. It stipulates that the assets would be locked in a trust for at least 20 years, preventing any sales, swaps, or disposals unless for retiring government debt.
“This representation believes it is crucial for the Philippines to accumulate strategic assets like BTC to support key national interests, including financial stability,” Villafuerte stated, emphasizing the need for Congress to draft new legislation to diversify the country’s assets for enhanced financial security.
Philippine lawmaker suggests the Strategic Bitcoin Reserve Act. Source: Philippine Congress
Philippine bill introduces “Bitcoin Purchase Program”
The lawmaker referred to Bitcoin as digital gold, highlighting its 40% annual growth rate over the last five years and its recent peaks.
He noted that the Philippines must “capitalize” on the growing significance of cryptocurrency in global markets, referencing El Salvador and other countries that are already investigating and applying Bitcoin reserve strategies.
The Strategic Bitcoin Reserve Act would require the central bank to create a Bitcoin Purchase Program.
This legislation would obligate the BSP to retain the asset for no less than 20 years before deciding whether to continue holding or sell it.
Additionally, it would necessitate the central bank to implement a proof-of-reserves system, compelling the central bank governor to deliver publicly available quarterly reports regarding the Strategic Bitcoin Reserve, detailing holdings, transactions, and management of private keys.
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The Philippines could outpace El Salvador’s Bitcoin holdings with 10,000 BTC
If the bill gains approval, the Philippines could surpass El Salvador and come close to Bhutan in Bitcoin holdings. El Salvador, which purchases Bitcoin daily, has amassed a total of 6,276 BTC (approximately $700 million), according to its Bitcoin Office.
Conversely, the Royal Government of Bhutan holds 10,565 Bitcoin, valued at nearly $1.2 billion, according to data from Arkham Intelligence.
Chart illustrating Bitcoin holdings by country. Source: Bitbo
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