Nikolas Sargeant
Philippine lawmakers have introduced groundbreaking legislation to establish a strategic Bitcoin reserve, positioning the Southeast Asian nation among the growing ranks of countries considering cryptocurrency as a sovereign asset. House Bill 421, known as the Strategic Bitcoin Reserve Act, was introduced by Congressman Luis Raymund Villafuerte Jr. and directs the Bangko Sentral ng Pilipinas (BSP) to systematically accumulate Bitcoin over a five-year period.
Under the proposed legislation, the central bank would be mandated to purchase 2,000 Bitcoin annually, building a total reserve of 10,000 BTC by the end of the acquisition period. The bill emphasizes strategic and transparent purchasing to minimize market disruption while establishing the cryptocurrency as part of the nation's sovereign wealth strategy. This systematic approach would make the Philippines one of the largest sovereign Bitcoin holders globally, following the footsteps of El Salvador and other nations exploring digital asset reserves.
The legislation includes strict custody and management provisions, requiring the Bitcoin reserve to be held in trust for a minimum of 20 years before any disposal decisions can be made. The bill explicitly prohibits selling, swapping, or disposing of the reserve except for one specific purpose: retiring outstanding government debt. Additionally, the proposal mandates quarterly audits and establishes institutional-grade custody standards, with annual liquidity caps of 10% to ensure responsible management of the digital assets.
The timing of this proposal coincides with Bitcoin's strong performance, recently reaching all-time highs above $124,000 before settling around current levels above $112,000. Villafuerte emphasized that the initiative aims to diversify the country's reserve portfolio and position the Philippines as a forward-thinking nation in the digital asset space. The bill cites Bitcoin's role as "digital gold" and references similar approaches adopted by other countries as precedent for this historic move toward cryptocurrency adoption at the sovereign level.
Recent Advances in Crypto in the Philippines
The Strategic Bitcoin Reserve proposal represents the latest development in the Philippines' evolving cryptocurrency landscape. Earlier regulatory progress includes the country's comprehensive approach to digital asset oversight with new draft cryptocurrency regulation frameworks aimed at providing clear guidelines for the industry.
Additionally, the Bangko Sentral ng Pilipinas has been exploring its own central bank digital currency (CBDC) initiative, targeting a 2029 launch for a Philippine digital peso. The country has also embraced practical cryptocurrency applications, with USDT now being accepted for social security payments, demonstrating the government's openness to integrating digital assets into public services.
