Philippine lawmakers are currently reviewing House Bill 421, known as the Strategic Bitcoin Reserve Act, which seeks to authorize the country’s central bank to hold up to 10,000 BTC. Introduced by Congressman Miguel Luis Villafuerte, the proposal highlights Bitcoin as a “strategic asset” that could strengthen the Philippines’ financial security and long-term stability.
Philippines’ Strategic Bitcoin Reserve aims to amass BTC
Villafuerte’s proposal envisions a sovereign Bitcoin reserve that would be built not through seizures or forfeitures, as is common in other countries, but via systematic accumulation.
Under the plan, the Philippine central bank would purchase 2,000 BTC annually for five years, gradually building a reserve of up to 10,000 BTC, securely stored in cold wallets under strict oversight.
Once established, the reserve would be locked for 20 years, with limited exceptions for fulfilling national debt obligations. The bill imposes legal restrictions on the central bank, forbidding any sale, swap, or disposal of the assets during this period unless needed to service sovereign debt.
The legislation also emphasizes transparency and accountability. It mandates a proof-of-reserves system, requiring the BSP governor to issue quarterly public reports detailing the reserve’s Bitcoin holdings, wallet addresses, and control over private keys.
If enacted, this framework would position the Philippines as a pioneer in sovereign digital asset management, offering unprecedented visibility into government-held crypto reserves.
Even after the 20-year lockup, the bill enforces strict post-lockup limits: no more than 10% of the reserve can be sold or used within any two-year period.
Early mover advantage
If passed, the Philippines would become the first Southeast Asian country to formally establish a sovereign Bitcoin reserve through legislation, a milestone that could elevate the nation’s standing in global crypto circles.
“Bitcoin gives emerging markets like the Philippines the opportunity to bypass western financial capital and protect themselves from depreciating fiat currencies,” Kadan Stadelmann, Chief Technology Officer of Komodo Platform, told crypto.news.
Stadelmann added, “The Philippines has entered the Bitcoin arms race, and the bill positions Bitcoin as digital gold. However, the country has yet to enact laws legalizing Bitcoin, which could pose challenges for the bill’s approval.”
Despite this, he believes a Bitcoin reserve could benefit the Philippines due to its potential for long-term appreciation and its role in promoting financial inclusion in a nation with a large unbanked population.
Unlike El Salvador, which adopted Bitcoin as legal tender, the Philippine initiative is more cautious and structurally focused, emphasizing long-term accumulation and fiscal insulation rather than retail-level adoption.
With a proposed reserve of 10,000 BTC, the Philippines would surpass El Salvador’s current holdings of roughly 6,276 BTC and approach Bhutan’s estimated 10,500 BTC.
The proposal comes amid tighter crypto regulation in the Philippines. Earlier this month, the Securities and Exchange Commission warned ten major crypto exchanges, including OKX, Bybit, and KuCoin, for operating without proper registration under the newly enacted Crypto Asset Service Provider rules.
