Philippines Proposes Strategic Bitcoin Reserve with 10,000 BTC Plan
By: Eva Baxter
The Republic of the Philippines is considering a groundbreaking financial strategy that could place the nation at the forefront of cryptocurrency adoption in Southeast Asia. A new legislative proposal titled the “Strategic Bitcoin Reserve Act” has been introduced, which aims to establish a 10,000 Bitcoin reserve, positioning Bitcoin as a key financial asset in the country.
This initiative, led by Representative Migz Villafuerte, outlines a meticulous plan for the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, to gradually acquire 2,000 Bitcoin annually over the course of five years. At current market values, the endeavor would amount to an investment of over $1.1 billion. The significant Bitcoin reserve is proposed to be secured in a trust, immune from sale or transfer, except to pay off government debt, and kept for a minimum of two decades.
Villafuerte has likened Bitcoin to “digital gold,” indicating it as a modern strategic asset capable of diversifying the nation's financial holdings and strengthening financial security. If successfully established, this reserve could propel the Philippines beyond countries like El Salvador and Bhutan in terms of cryptocurrency holdings, marking a pivotal shift in national wealth management strategies.
The proposed bill also calls for greater transparency from the central bank. It mandates the introduction of a proof-of-reserves system, which will ensure quarterly public disclosures of Bitcoin holdings and transactions, including custody arrangements. This new level of transparency aims to foster public trust and provide a robust check on how the reserves are managed.
The legislative proposal now faces scrutiny and debate in Congress, where policymakers will deliberate the potential risks and rewards that come with aligning a portion of the nation's financial future with the volatile cryptocurrency market. As the global financial landscape evolves, the Philippines’ proposal stands as a bold statement towards the integration of digital currency into national financial strategies.
