Bitcoin News Today: The Philippines Aims to Outpace El Salvador with 10,000 Bitcoin Sovereign Reserve

The Philippines has taken a bold step toward joining the ranks of nations considering Bitcoin as a strategic reserve asset, following a legislative proposal that could see the country's central bank acquiring up to 10,000 Bitcoin over the next five years. The initiative, introduced by Representative Miguel Luis Villafuerte in House Bill 421, seeks to establish a long-term sovereign Bitcoin reserve to diversify the country's financial portfolio and strengthen its economic resilience.

Under the proposed “Strategic Bitcoin Reserve Act,” the Bangko Sentral ng Pilipinas (BSP) would be mandated to acquire 2,000 Bitcoin annually for five years and store the assets in cold storage, distributed across secure locations in the country. The Bitcoin would be held in trust for a minimum of 20 years, with restrictions on its disposal except for specific purposes such as retiring government debt. The act also requires that no more than 10% of the reserve be sold over any two-year period once the 20-year holding period concludes. This approach aims to prevent speculative trading and ensure the asset serves as a long-term store of value [1].

Villafuerte has positioned Bitcoin as a form of “digital gold,” citing its historical performance and growing role in global markets. He emphasized that the move aligns with similar initiatives in other countries, including El Salvador, which currently holds approximately 6,276 Bitcoin, and Bhutan, which owns slightly more with 10,565 BTC. The proposed Philippine reserve would significantly exceed El Salvador's holdings, making it one of the largest sovereign Bitcoin reserves in the world [2].

The legislation also outlines a framework for transparency and oversight, requiring the BSP to conduct quarterly public “proof-of-reserve” audits verified by independent third parties. These audits would include detailed reports on holdings, transactions, and control of private keys, all of which would be published online to ensure accountability. Additionally, the act explicitly affirms that the government will not interfere with individual and business ownership of Bitcoin, preserving private property rights [3].

Proponents of the bill argue that diversifying the country's reserves beyond traditional assets like gold and the U.S. dollar is essential for financial stability, especially as global interest in Bitcoin as a reserve asset continues to grow. Villafuerte highlighted the increasing adoption of digital assets by governments worldwide, including policy discussions in Brazil, Switzerland, and Poland, as well as recent U.S. legislative proposals supported by high-profile political figures. He also noted that the Philippines' reliance on U.S. dollar and gold reserves exposes it to external financial shocks, making Bitcoin a potential hedge against currency volatility [1].

The bill, if passed, would mark a significant milestone for the Philippines, potentially making it the first Asian country to legislate a sovereign Bitcoin reserve strategy. The initiative reflects a broader shift in global financial policy, where Bitcoin is increasingly viewed not just as an investment, but as a strategic asset with the potential to enhance financial sovereignty and long-term fiscal stability [3].

Source:

[1] Philippine bill charts path to strategic reserve with ... (https://cointelegraph.com/news/philippine-bill-strategic-bitcoin-reserve-10000-btc)

[2] Philippines Proposes Massive 10,000 Bitcoin Buy for Strategic ... (https://finance.yahoo.com/news/philippines-proposes-massive-10-000-172644985.html)

[3] Filipino Congressman Files Legislation to Establish National ... (https://finance.yahoo.com/news/filipino-congressman-files-legislation-establish-160510217.html)