- The Philippines Congress advances a bill to build a 10,000 BTC strategic reserve.
- House Bill 421 orders BSP to purchase 2,000 BTC annually over five years.
- Bitcoin has delivered a 40% compound annual growth rate in five years.
The Philippines is taking a significant step toward becoming one of the first Asian nations to hold Bitcoin in its official reserves. Congressman Miguel Luis Villafuerte has introduced House Bill 421, also known as the Strategic Bitcoin Reserve Act, which directs the Bangko Sentral ng Pilipinas (BSP) to build a 10,000 BTC reserve over five years. The bill positions Bitcoin as a long-term strategic asset to strengthen financial stability and reduce reliance on traditional reserves.
The Proposal and Its Conditions
House Bill 421 outlines that the BSP must purchase up to 2,000 BTC annually for five years and store the assets in secure cold wallets across the country. These holdings would be locked for a minimum of 20 years, ensuring they serve as a protected national asset rather than a speculative investment.
The legislation sets strict rules on liquidation. The reserve cannot be sold or swapped except under special circumstances, such as paying off sovereign debt. Even then, no more than 10% may be sold within a two-year span. A year before the lock-up ends, the BSP governor must advise Congress on whether to extend the program or allow limited sales.
To ensure transparency, the act requires quarterly proof-of-reserve audits conducted by independent third parties, with reports published publicly. Oversight would involve the BSP, the Department of Finance, the Department of Defense, and the Securities and Exchange Commission.
Why Bitcoin?
Villafuerte argues that diversifying beyond gold and the U.S. dollar is critical for the Philippines, especially as national debt reached ₱16.09 trillion ($285 billion) in late 2024. He cited U.S. Federal Reserve Chair Jerome Powell’s description of Bitcoin as “digital gold” and pointed to its strong performance over recent years. Data shows Bitcoin has delivered a compound annual growth rate of about 40% in the past five years, surpassing most traditional assets.
Supporters say the move will provide a new layer of financial security, strengthen the peso’s convertibility during crises, and ensure the Philippines is not left behind in a shifting global economy. “It is vital for the Philippines to stockpile strategic assets such as Bitcoin to serve important national interests,” Villafuerte said.
Global Context and Momentum
The Philippines’ proposal comes as other governments explore similar paths. El Salvador remains the most visible example, having adopted Bitcoin as legal tender in 2021 and continuing to add to its holdings. Brazil’s Congress is currently debating a $19 billion reserve plan, while Hong Kong and Poland are also considering integrating Bitcoin into their reserves.
Data from CoinGecko shows that 11 governments already hold about 480,000 BTC worth more than $55 billion, or 2.29% of the total supply. The United States leads with 198,022 BTC from federal seizures, while China controls around 190,000 BTC.
House Bill 421 excerpt. (Source: Hrep Online)
The United Kingdom, North Korea, Bhutan, and El Salvador also hold notable amounts. Advocates warn that as more countries build reserves, supply could tighten, making early accumulation critical.
Villafuerte also noted that private institutions are following the same path. Japan’s Metaplanet, for instance, recently expanded its holdings to 18,888 BTC, highlighting a growing corporate strategy of long-term Bitcoin accumulation.
The Philippines’ Position
The Philippines ranks seventh worldwide in crypto adoption and third in Asia, according to Chainalysis’ 2024 index. Regulators have balanced innovation with caution. The BSP completed its Project Agila central bank digital currency trial earlier this year, while the Securities and Exchange Commission has launched a sandbox program for crypto firms.
At the same time, officials issued advisories against unlicensed exchanges, warning that unauthorized platforms pose serious risks to Filipino investors.
The introduction of the Strategic Bitcoin Reserve Act reflects the Philippines’ attempt to adapt to global financial trends while strengthening domestic resilience. If passed, the bill would make the country one of the first in Asia to lock Bitcoin into national reserves, signaling a new era of asset diversification.
