The Philippines may be on the verge of making history in Asia with a bold proposal to build a sovereign Bitcoin reserve. A newly filed bill in the House of Representatives seeks to direct the Bangko Sentral ng Pilipinas (BSP), the nation’s central bank, to accumulate 10,000 BTC over the next five years and lock it away for two decades.
The Strategic Bitcoin Reserve Act
Filed as House Bill 421 by Congressman Miguel Luis Villafuerte, the proposed Strategic Bitcoin Reserve Act would require the BSP to purchase 2,000 BTC per year. The coins would remain untouchable for 20 years, with sales permitted only to pay off government debt after that lockup period. If passed, this legislation would make the Philippines one of the first Asian nations to formalize a sovereign Bitcoin strategy through law, putting it alongside countries like Bhutan and Pakistan that have explored similar paths though through mining or planned reserves rather than legislation. Villafuerte described Bitcoin as an “increasingly vital strategic asset,” stressing that the country must act now to secure its financial independence and economic resilience.
A Different Approach From Other Nations
Unlike the U.S. and Germany, which built their state-level Bitcoin holdings mainly from law enforcement seizures, the Philippine proposal is unique it would require direct, scheduled purchases. Industry voices have praised the move. Miguel Antonio Cuneta, co-founder of Satoshi Citadel Industries, called the proposal “an asymmetric bet with significant upside for the Philippines,” noting that dedicating even a small portion of reserves to a non-correlated, high-growth asset could benefit the nation without draining resources from critical sectors.
Support and Skepticism
Still, the bill faces challenges. Luis Buenaventura, Head of Crypto at GCash, expressed doubts about its passage but emphasized its symbolic impact. “Even if it doesn’t pass, the proposal shines a spotlight on Bitcoin’s growing role in global treasuries,” he said, adding that it could inspire local corporations to adopt Bitcoin as part of their balance sheets.
Others see it as a bold step toward financial transparency. Paul Soliman, CEO of BayaniChain, highlighted how a Bitcoin reserve could be fully auditable by the public if the government discloses its wallet addresses something unprecedented in traditional finance.
Risks and Rewards
Of course, concerns remain. Bitcoin’s price volatility, the use of taxpayer funds, and the Philippines’ current financial literacy gap pose risks. But advocates argue that with clear governance, smart acquisition strategies, and parallel investment in education, a sovereign Bitcoin reserve could serve not only as a hedge against economic uncertainty but also as a long-term generational safeguard.
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