Philippines Considers Strategic Bitcoin Reserve

Philippines proposes strategic Bitcoin reserve

The Asian crypto market is abuzz as Philippine lawmaker Migz Villafuerte introduced the Strategic Bitcoin Reserve Act. Under the bill, the Bangko Sentral ng Pilipinas (BSP) would acquire 2,000 BTC annually for 5 years, amassing a total of 10,000 BTC worth about $1.1 billion at current prices.

Purpose and governance

The reserve would be locked for 20 years and only tapped for one purpose: national debt repayment. After the lock-up, the government could sell no more than 10% every two years. This design mirrors traditional gold or oil reserves, ensuring long-term asset preservation.

BSP would also be required to publish quarterly proof-of-reserve reports, disclosing holdings and custody practices. Such transparency could enhance trust in the nation’s financial system while pushing forward broader crypto regulation.

Bitcoin as digital gold

Villafuerte describes Bitcoin as “digital gold,” citing its average 40% annual growth. Including BTC in national reserves would diversify assets and reduce reliance on the USD and traditional gold. This aligns the Philippines with the global wave of crypto adoption and digital finance strategies.

Implications for the crypto market

If passed, the bill would make the Philippines the first Asian country to establish a strategic Bitcoin reserve. This could significantly influence Bitcoin’s price and inspire other countries to follow. It underscores the growing role of the crypto market in shaping global economic resilience.

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