Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The Congress of the Philippines is currently considering a legislative proposal that could see the nation’s central bank, the Banko Sentral ng Pilipinas (BSP), establish a strategic reserve of 10,000 Bitcoin. If approved, this move would position the Philippines as one of the first countries in Southeast Asia to adopt Bitcoin as a strategic national asset, with the bill mandating annual purchases over five years and a minimum 20-year lock-up period for the digital currency.
The Strategic Bitcoin Reserve Act
Filed by Camarines Sur Representative Migz Villafuerte in June, the proposed “Strategic Bitcoin Reserve Act” aims to direct the BSP to acquire 2,000 Bitcoin annually for five years, accumulating a total of 10,000 BTC. At current market prices, this reserve would be valued at approximately $1.1 billion, earmarked for a trust that would prevent its sale, swap, or disposal for at least two decades, with an exception for retiring government debt.
Villafuerte emphasized the importance of this initiative, stating that it is “vital that the Philippines stockpile strategic assets such as BTC to serve important national interests such as providing financial stability.” He underscored the necessity for Congress to enact new laws to diversify the country’s assets and bolster financial security in an evolving global economy.
The lawmaker championed Bitcoin as “digital gold,” citing its reported 40% annual growth rate over the past five years and its recent all-time highs. He urged the Philippines to “cash in” on the increasing prominence of cryptocurrency in global markets, drawing parallels with nations like El Salvador and Bhutan that have already explored or implemented Bitcoin reserve strategies.
Implementation and Transparency
Beyond the acquisition mandate, the Strategic Bitcoin Reserve Act outlines a comprehensive Bitcoin Purchase Program for the BSP. This includes the requirement for the central bank to maintain a rigorous proof-of-reserves system. Under this system, the central bank governor would be compelled to provide publicly available quarterly reports detailing the Strategic Bitcoin Reserve’s holdings, transaction history, and the management of private keys.
Global Context and Potential Impact
Should the bill pass, the Philippines’ potential 10,000 BTC reserve would significantly alter its position among sovereign Bitcoin holders. This amount would surpass El Salvador’s current holdings of 6,276 BTC, valued at approximately $700 million, according to its Bitcoin Office. It would also bring the Philippines close to the Royal Government of Bhutan’s reported 10,565 Bitcoin, which Arkham Intelligence data values at nearly $1.2 billion.
