Camarines Sur representative Miguel Luis Villafuerte has filed a bill seeking to create a “Strategic Bitcoin Reserve” for the Philippines, positioning the cryptocurrency as a long-term sovereign asset alongside traditional reserves like gold and foreign currency.
House Bill No. 421, or the proposed Strategic Bitcoin Reserve Act, directs the Bangko Sentral ng Pilipinas (BSP) to purchase 2,000 Bitcoins annually over a five-year period, totaling 10,000 BTC.
These assets will be held in trust for at least 20 years, with strict rules against their premature sale or disposal, except for debt retirement purposes.
Villafuerte said the measure is crucial as Bitcoin gains recognition globally as a strategic financial resource. Countries such as El Salvador, Brazil, Switzerland, Germany, Poland, and Russia have already moved to integrate Bitcoin into their reserves, while others in Asia — including Hong Kong, Bhutan, Thailand, and Malaysia — are exploring similar policies.
“While the Philippines holds dollar and gold reserves, the increasing significance of BTC in ensuring financial and economic prowess across continents makes it imperative for the country to take legislative measures to maximize pressing economic opportunities,” Villafuerte wrote in his explanatory note.
The lawmaker cited the United States, which currently holds the largest stash of Bitcoin at 207,189 BTC, followed by China (194,000 BTC) and the United Kingdom (61,000 BTC).
Under the bill, the BSP governor will establish a decentralized network of secure cold storage facilities across the country to safeguard government Bitcoin holdings. The system will be subject to quarterly public audits and cryptographic attestations to ensure transparency.
The proposal also guarantees the protection of private property rights, clarifying that the government will not seize or interfere with lawfully acquired Bitcoin holdings of individuals or businesses.
Villafuerte said the measure is timely given the country’s ballooning debt, which reached ₱16.09 trillion as of November 2024, and could serve as a hedge against future financial crises.
Former solicitor general Florin Hilbay welcomed the filing of the bill, calling it “a good first step” in a Facebook post.
“It is a positive move, though it won’t go anywhere ‘unless you have people at the highest levels who understand Bitcoin,” he said.
Hilbay said more important than a strategic reserve is Bitcoin education, which he described as “more strategic” than merely having the government hold Bitcoin in its treasury.
If passed into law, the BSP will be tasked to draft implementing rules within 60 days of effectivity, with initial funding charged to its existing budget.
