tl;dr
The Philippines has proposed House Bill 421 to create a Strategic Bitcoin Reserve, directing the central bank to purchase 10,000 BTC over five years with a 20-year lockup, allowing sales only to repay government debt after two decades. This move aims to strengthen financial stability and position th...
The Philippines has proposed the establishment of a Strategic Bitcoin Reserve through House Bill 421, introduced by Congressman Miguel Luis Villafuerte. The measure directs the country's central bank to accumulate 10,000 BTC over five years, with a 20-year lockup period, mandating yearly purchases of 2,000 BTC. Sales would be permitted only to pay off government debt after two decades. This initiative could position the Philippines as one of the first Asian nations to legislate a sovereign Bitcoin reserve formally.
Villafuerte emphasized Bitcoin's growing importance in ensuring financial and economic strength, advocating for the country to stockpile strategic assets like Bitcoin to support national interests and financial stability. Comparatively, Bhutan and Pakistan have taken different routes to build cryptocurrency holdings, while nations like the U.S. and Germany expanded reserves primarily through law enforcement seizures. In contrast, the Philippine bill calls for scheduled purchases by its central bank.
Experts see potential benefits in the proposal. Miguel Antonio Cuneta, co-founder of Satoshi Citadel Industries, highlighted the opportunity for the Philippines to make an asymmetric bet on Bitcoin with a track record of substantial compound annual growth, suggesting that diversification into Bitcoin could strengthen the country's financial position without hampering other critical sectors.
However, the bill is expected to face challenges in the legislative process. Luis Buenaventura of GCash expressed skepticism about its passage but noted that the spotlight it casts on Bitcoin could encourage local corporations to begin incorporating crypto assets into their balance sheets. Additionally, the bill may influence how law enforcement manages confiscated cryptocurrencies.
Paul Soliman, CEO of BayaniChain, praised the proposal as a bold move recognizing Bitcoin's role as a censorship-resistant store of value, akin to digital gold. He pointed to the unprecedented transparency a Bitcoin treasury could provide if the government discloses its wallets, potentially building public trust. Yet, he acknowledged risks such as volatility, taxpayer fund usage, and financial literacy gaps, stressing that clear governance, smart acquisition, and education are crucial for the reserve to evolve beyond a hedge into a symbol of accountability and a generational safeguard.