Bitcoin News Today: Philippines Proposes 10000 Bitcoin Purchase for 20 Year Lockup

The Philippine House of Representatives has proposed a bill—House Bill 421—that would mandate the country's central bank to acquire 10,000 Bitcoin over the course of five years, purchasing 2,000 BTC annually. The acquired holdings would be locked up for 20 years under a statutory restriction, with sales permitted only to repay government debt after the lockup period ends. The bill, introduced by Congressman Miguel Luis Villafuerte, emphasizes governance, auditability, and transparency by requiring the central bank to hold the Bitcoin under a trust structure, submit annual public reports, and undergo independent audits [1].

The Strategic Bitcoin Reserve proposal aims to treat Bitcoin as a long-term strategic asset, distinguishing the Philippines’ approach from other countries that have acquired Bitcoin through law enforcement seizures or state-backed mining. If passed, the Philippines would become one of the first countries in Asia to enact a sovereign Bitcoin reserve through a structured, scheduled purchase mechanism with explicit governance rules [1].

Under the proposed legislation, the central bank would begin acquiring Bitcoin annually, with the first 2,000 BTC purchase scheduled for the first year of the bill’s implementation. Over five years, the central bank would build up a total holding of 10,000 BTC, which would then be locked away for 20 years. During this period, any sales would be strictly limited and allowed only in the context of government debt repayment. Proponents argue that this model would provide long-term financial resilience and act as an asymmetric upside for the country's balance sheet [1].

Congressman Villafuerte, the bill’s sponsor, has emphasized Bitcoin’s growing role in national financial strength. Miguel Antonio Cuneta, co-founder of Satoshi Citadel Industries, described the initiative as a bold strategic move, while Luis Buenaventura of GCash sees it as a potential signal for corporate treasuries to consider Bitcoin as a diversification tool. Paul Soliman of BayaniChain highlighted the bill’s emphasis on transparency and long-term stewardship but also noted the risks of volatility and the use of taxpayer funds [1].

The proposed governance structure includes public reporting of acquisition and custody details, as well as independent audits, to ensure accountability. Some advocates suggest that public disclosure of wallet addresses and audit trails could enhance trust and transparency. However, critics and analysts have raised concerns about the volatility of Bitcoin and the potential market impact of large-scale government purchases. The central bank’s use of public funds for speculative assets also remains a point of contention [1].

The bill’s model of scheduled central bank purchases contrasts with other approaches to sovereign Bitcoin acquisition, such as U.S. and German methods involving law enforcement seizures or Bhutan’s state-backed mining. The Philippine approach, while novel, introduces new fiscal and operational risks, including potential market distortion and exposure to price swings. The legal framework would need to address how the central bank would navigate these challenges while fulfilling its core monetary policy responsibilities [1].

If enacted, the Philippines could position itself as a leader in sovereign Bitcoin strategy within Asia, but the bill also raises broader questions about fiscal discipline, long-term asset management, and the role of central banks in managing high-risk, high-reward digital assets. The outcome of the bill’s legislative process will determine whether the country will move forward with this ambitious and unprecedented financial experiment [1].

Source: [1] Philippine Bill Proposes Central Bank Could Buy 10,000 Bitcoin and Lock Holdings for 20 Years August 25, 2025 (https://en.coinotag.com/philippine-bill-proposes-central-bank-could-buy-10000-bitcoin-and-lock-holdings-for-20-years/)