Philippines Mulls National Bitcoin Reserve: Details

Philippines Considers Establishing a National Bitcoin Reserve

A proposal in the Philippines aims to establish a national Bitcoin reserve, potentially making it the first Asian nation to legislate such a strategy. Congressman Miguel Luis “Migz” Villafuerte, known for his prior role as the country’s youngest elected governor, has introduced a bill directing the central bank to accumulate Bitcoin.

Key Proposal Details

• The proposed House Bill 421 calls for the Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, to purchase up to 2,000 Bitcoin annually for five years.
• This would build a reserve of 10,000 BTC held in cold storage across multiple secure facilities under central bank oversight.
• The bill stipulates that the BSP cannot sell or encumber its Bitcoin for at least 20 years, except to retire government debt.
• One year before the lock-up expires, the central bank must report to Congress on whether to extend the hold period or begin gradual sales, capped at 10% of the reserve every two years.

Rationale Behind the Bill

Villafuerte, representing the House Committee on Information and Communications Technology, argues that the Philippines needs to diversify its reserves beyond traditional assets like gold and US dollars. He describes Bitcoin as a new “digital gold” capable of safeguarding the nation’s balance sheet against global economic shocks and dependence on the US dollar.

The congressman also noted global trends of integrating Bitcoin into national reserves, citing examples from El Salvador, Brazil, Switzerland, and Poland, along with a proposal by US Senator Cynthia Lummis that President Donald Trump has vocally endorsed.

Implications

If enacted, this legislation could position the Philippines as a forward-thinking adopter of digital assets within Asia. It would also place Bitcoin on the country's balance sheet for the long-term.