Bitcoin News Today: Philippines Bets on Bitcoin as Digital Gold for Long-Term Stability

Generated by AI AgentCoin World
Saturday, Aug 23, 2025 1:06 am ET1min read
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Aime RobotAime Summary

- Philippine Congress proposes a 5-year plan for BSP to build a 10,000 BTC strategic reserve, stored in cold wallets for 20+ years.

- The bill mandates quarterly transparency reports and limits reserve sales to 10% every two years after the 20-year holding period.

- Modeled after El Salvador and Bhutan's BTC reserves, the initiative aims to diversify national assets amid $285B sovereign debt exposure.

- Requires distributed storage and protects private ownership rights, needing congressional and presidential approval to enact.

The Philippine Congress is considering legislation that would direct the Bangko Sentral ng Pilipinas (BSP) to establish a strategic

Bitcoin
reserve of 10,000 BTC over a five-year period. Introduced by Rep. Miguel Luis Villafuerte, the bill—dubbed the "Strategic Bitcoin Reserve Act"—would require the central bank to purchase 2,000 Bitcoin annually, with the entire reserve to be stored in cold storage and held for at least 20 years. The total value of the reserve at current market prices is estimated at around $1.1 billion [1].

Under the proposed framework, the Bitcoin would be locked in a trust, with sales or swaps only permissible under limited circumstances, such as retiring government debt. Moreover, the bill includes a restriction that no more than 10% of the reserve may be liquidated within any two-year period following the 20-year holding minimum [2]. The initiative aligns with broader global trends where countries like El Salvador and Bhutan have already begun integrating Bitcoin into their national reserves. Currently, El Salvador holds approximately 6,276 BTC, while Bhutan’s holdings stand at 10,565 BTC, nearly matching the proposed Philippine reserve in both scale and value [1].

The bill also mandates the BSP to implement a “proof-of-reserve” system. This system would require the central bank governor to provide quarterly public reports detailing the holdings, transactions, and control of private keys. The transparency measure is intended to ensure accountability and public confidence in the reserve program. Additionally, the proposed law emphasizes that the reserve would be held in distributed cold storage facilities across the country, enhancing security and minimizing systemic risks [2].

Supporters of the bill argue that diversifying national reserves beyond traditional assets like gold and the U.S. dollar is essential for financial stability. The Philippines currently carries a sovereign debt of $285 billion, with domestic obligations accounting for nearly 68% of the total. By incorporating Bitcoin into its strategic reserves, the country could reduce its exposure to dollar volatility and global economic shocks. Villafuerte has positioned Bitcoin as a “digital gold” that could provide long-term value and stability [2].

The bill must still clear both chambers of the Philippine Congress and obtain presidential approval to become law. If enacted, the Philippines would join a growing number of countries exploring Bitcoin as a strategic asset. The bill also explicitly protects the rights of individuals and businesses to buy, hold, and trade Bitcoin without interference, ensuring that national reserves do not infringe on private ownership rights [2].

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] Philippines House Proposes Strategic Bitcoin Reserve (https://thedefiant.io/news/regulation/philippines-house-proposes-strategic-bitcoin-reserve-f5dd7ec6)

[4] Philippines considers establishing a national Bitcoin reserve (https://cryptobriefing.com/philippines-bitcoin-reserve-legislation/)