Summary
- The initiative mandates the nation’s central bank to acquire 10,000 BTC over a period of five years, with a 20-year holding obligation.
- Regulations concerning custody, proof-of-reserves, and disposal will be established by law.
- Domestic stakeholders regard the proposal as ambitious but express concerns about volatility, fiscal implications, and gaps in financial literacy.
The Philippines has proposed the creation of a Strategic Bitcoin Reserve, directing its central bank to gather 10,000 BTC over five years with a 20-year lockup period.
The legislation was introduced in the House of Representatives as House Bill 421 by Congressman Miguel Luis Villafuerte, requiring the central bank to manage the reserve under strict trust and reporting guidelines.
Officially titled the Strategic Bitcoin Reserve Act, the bill calls for annual purchases of 2,000 BTC and permits sales only to settle government debt after 20 years. If accepted, this would position the Philippines among the first nations in Asia to formalize a sovereign Bitcoin reserve.
Villafuerte indicated that the “growing importance of Bitcoin for financial and economic stability” necessitates substantial legislative actions.
He also emphasized the need for the Philippines to accumulate strategic assets like Bitcoin to strengthen national interests and enhance financial security.
In other parts of Asia, Bhutan has developed Bitcoin and Ethereum reserves through hydropower mining, while Pakistan has announced ambitions for a sovereign reserve. Unlike countries like the U.S. and Germany, which gained assets from law enforcement seizures, this bill instructs the Philippine central bank to acquire Bitcoin regularly.
According to Miguel Antonio Cuneta, co-founder of Satoshi Citadel Industries, which once ran the nation’s first registered virtual asset provider, this initiative could represent “an asymmetric bet on the upside for the Philippines,” he told Decrypt.
“Looking at nations and regions that have initiated or are considering a strategic Bitcoin reserve provides us a framework to emulate,” Cuneta stated.
Future Outlook
When asked about the source of assets, Cuneta suggested that allocating a small percentage into “a non-correlated, innovative asset class with a proven track record of exceptional compound annual growth” could enhance its strategy.
“The ideal approach would be to achieve this without compromising critical funding needs in other areas,” Cuneta, now a city councilor, noted.
Nonetheless, the bill is anticipated to encounter challenges during legislative discussions.
“While I have doubts about its passage, I remain hopeful that local companies will… begin integrating Bitcoin into their financial strategies,” Luis Buenaventura, head of crypto at GCash, shared with Decrypt, adding that the proposal “highlights Bitcoin’s expanding importance in global treasury management.
The bill may also prompt law enforcement agencies to handle confiscated assets more responsibly from past operations, Buenaventura remarked.
This legislation represents a “bold move as it positions Bitcoin in its intended capacity: as a long-term, censorship-resistant store of value akin to digital gold,” Paul Soliman, CEO of blockchain infrastructure firm BayaniChain, told Decrypt. “In contrast to traditional reserves, a Bitcoin treasury can be audited publicly if the government discloses its wallets.”
“This level of transparency is unparalleled in finance and might foster genuine trust among Filipinos,” Soliman added. “However, risks persist—such as volatility, the utilization of taxpayer funds, and existing financial literacy challenges.”
Yet with “well-defined governance, an intelligent acquisition approach, and complementary educational investments,” Soliman believes the reserve “could evolve into more than just a safeguard; it might symbolize accountability and serve as a protection for future generations in the country.”
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