Philippines Proposes Strategic Bitcoin Reserve to Boost Financial Stability
The Philippines has taken a significant step towards embracing Bitcoin as a strategic reserve asset, with Congressman Miguel Luis Villafuerte introducing the Strategic Bitcoin Reserve Act in the House of Representatives. This move aims to acquire 10,000 BTC over five years, which would be held in trust for at least 20 years to provide long-term financial stability and safeguard the country’s national interest.
The proposed law, House Bill No. 421, suggests an annual acquisition of 2,000 BTC through the Bangko Sentral ng Pilipinas (BSP), which would be placed in cold storage facilities distributed across the country. The holdings could only be sold under strict conditions, such as retiring sovereign debt, and no more than 10% of the reserve may be liquidated in any two-year period after the minimum holding period expires.
Global Governments’ Growing Interest in Bitcoin Reserves
Governments worldwide are increasingly turning to Bitcoin as a strategic reserve asset, with 11 governments collectively controlling 480,196 BTC, worth about $55.6 billion, equal to 2.29% of Bitcoin’s supply, according to data from CoinGecko. The U.S. leads with 198,022 BTC ($22.9B), followed by China with 190,000 BTC ($22B), mostly tied to confiscations.
El Salvador remains a flagship example of sovereign adoption, having made Bitcoin legal tender in 2021. While retail usage has waned, the government continues to accumulate, recently adding 22 BTC to its holdings, now worth over $725 million. Other countries, such as Argentina and Venezuela, have also turned to Bitcoin and stablecoins to navigate inflation and dollar shortages.
Source: CoinGecko
Philippines’ Crypto Adoption and Regulatory Environment
The Philippines ranks 7th globally in crypto adoption, according to Chainalysis’ 2024 Geography of Crypto report. The country has also been refining its stance on digital assets, with the Securities and Exchange Commission (SEC) launching its Strategic Sandbox (StratBox) program in April, allowing crypto firms to test new products and services in a controlled environment.
