A Filipino lawmaker is proposing a law that would make Bitcoin a strategic asset for the country, similar to oil in Canada or wheat reserves in Europe. The plan involves the government accumulating 10,000 BTC over five years, to be locked for twenty years and used exclusively to reduce the national debt.
A Groundbreaking Bill for a BTC Reserve
The proposed bill, named the Strategic Bitcoin Reserve Act, is championed by Representative Miguel Luis R. Villafuerte. It mandates the central bank (Bangko Sentral ng Pilipinas) to purchase 2,000 BTC annually for five years. The goal is to diversify the state’s assets and secure some monetary sovereignty at a time when the peso is under increasing pressure.
The strict rule states that the acquired bitcoins can only be used to repay the public debt, which was valued at $285 billion in January, accounting for 60% of the GDP. After twenty years, the central bank can sell a maximum of 10% of the reserve every two years, no more.
Bitcoin Serving Public Debt
This approach turns Bitcoin into a long-term instrument, akin to a state-controlled “digital gold.” Villafuerte emphasizes:
Given the increasing role of cryptocurrencies in global finance, it is imperative to diversify our reserves to ensure financial security.
If the project is approved, the Philippines would be among the first nations to lock such a substantial amount of BTC with a specific goal: debt reduction. It would also be a symbolic milestone in recognizing Bitcoin as a sovereign asset, not just a speculative one.
Central Bank-Worthy Storage
The central bank must establish a robust storage system. The BTC would be placed in cold storage, spread across multiple sites in the country to minimize compromise risks. The digital vaults would undergo quarterly audits, with public cryptographic evidence and oversight from independent third-party auditors.
Airdrops and forks generated by these BTC would also be held for at least five years, demonstrating the bill’s aim to capture all possible value. Crucially, the proposal ensures that private Bitcoin holdings will never be touched or seized.
A Visionary Strategy?
With this initiative, the Philippines would be banking on a clear bet: that Bitcoin will significantly appreciate in the coming decades. If the BTC price were to skyrocket, the 10,000 units could represent a massive windfall to alleviate the burden of public debt.
