A new and groundbreaking proposal has been introduced by a Philippine lawmaker that could potentially revolutionize the country’s financial landscape. Representative Migz Villafuerte has put forth the “Strategic Bitcoin Reserve Act,” which aims to mandate the central bank, Bangko Sentral ng Pilipinas (BSP), to establish a strategic Bitcoin reserve.
Under this proposal, the BSP would be required to purchase 2,000 Bitcoin (BTC) annually over the course of five years, totaling 10,000 BTC. This bold move would cost over $1.1 billion at current prices, with the intention of securing a long-term digital asset reserve for the nation.
Villafuerte envisions Bitcoin as a modern strategic asset that could diversify the country’s balance sheet and enhance financial security, drawing parallels to the concept of digital gold. The reserve would be locked in trust for a minimum of two decades, with strict regulations prohibiting its sale or transfer except in cases of retiring government debt.
In addition to the acquisition of Bitcoin, the proposal also calls for the implementation of a proof-of-reserves system. This system would require the BSP to provide quarterly public disclosures detailing their holdings, transactions, and custody arrangements, ensuring transparency and accountability.
If the “Strategic Bitcoin Reserve Act” is enacted, the Philippines could potentially surpass other nations in terms of Bitcoin holdings, such as El Salvador and Bhutan. El Salvador made headlines by declaring Bitcoin legal tender in 2021, while Bhutan has quietly accumulated a sizable reserve through its sovereign investment arm.
With Bitcoin currently trading at around $116,850 per coin, the Philippines’ proposed reserve would represent a significant sovereign commitment to the digital asset. This move could position the country as one of the largest state-level holders of Bitcoin globally, signaling a strategic shift towards embracing cryptocurrency as a key component of its financial strategy.
As the bill moves through the legislative process, policymakers will need to carefully consider the potential risks and benefits of tying a portion of the nation’s financial future to the volatile crypto market. The debate surrounding this proposal is likely to intensify in the coming months, as the Philippines navigates the complexities of integrating Bitcoin into its economic framework.