Bitcoin News Today: Philippines Proposes 20-Year Strategic Bitcoin Reserve to Hedge National Debt

The Philippines is exploring a high-stakes financial initiative with the introduction of House Bill 421, which proposes the creation of a Strategic Bitcoin Reserve. Sponsored by Congressman Miguel Luis Villafuerte, the bill—formally titled the Strategic Bitcoin Reserve Act—calls for the Bangko Sentral ng Pilipinas (BSP) to acquire 10,000 BTC over a five-year period, at a rate of 2,000 BTC annually. The purchased Bitcoin would be locked up for 20 years, during which it could only be used to retire government debt and could not be sold, swapped, or encumbered for any other purpose [1][2].

The initiative positions Bitcoin as a strategic asset that could bolster the country’s financial stability. Villafuerte cited Bitcoin’s historical performance, noting that it has outpaced all other asset classes with a compound annual growth rate of about 40% over five years. He also highlighted the need to diversify national assets in response to the country’s $285 billion national debt, which represents 60% of GDP [1][4]. The proposed reserve would be stored in a decentralized network of secure facilities across the Philippines, with geographically dispersed locations to reduce the risk of simultaneous compromise. The central bank would also be responsible for ongoing monitoring, auditing, and publishing quarterly reports on the reserve’s holdings and private key controls [1][3].

The bill outlines a structured approach to asset management, with the central bank required to submit recommendations to Congress one year before the 20-year holding period ends. If the decision is made to sell the reserve, the central bank would be limited to releasing no more than 10% of the holdings every two years, ensuring a controlled and measured exit strategy [1].

The proposed legislation reflects a global trend of governments treating Bitcoin as a strategic reserve asset. Villafuerte referenced similar initiatives in El Salvador, Brazil, Switzerland, and other countries, noting that Bitcoin’s fixed supply of 21 million coins could offer a hedge against devaluation. The Philippines’ approach stands out for its legislative clarity and long-term planning, potentially setting a regional precedent for sovereign Bitcoin reserves [1][5].

Analysts have offered mixed but largely supportive responses. Miguel Antonio Cuneta of Satoshi Citadel Industries described the proposal as an “asymmetric bet” with the potential to provide significant upside without compromising other fiscal priorities. However, Luis Buenaventura of GCash suggested the bill may not pass in its current form but could still influence corporate and institutional interest in Bitcoin [1].

The bill also highlights the growing acceptance of Bitcoin as part of national financial strategy. Unlike seizures or mining-based accumulation, this approach mandates direct purchases, aligning with global trends but offering a more deliberate and institutionalized structure [1]. The long-term lockup and restricted usage reinforce its role as a strategic asset rather than a speculative one [6].

Sources:

[1] https://finance.yahoo.com/news/philippines-consider-strategic-bitcoin-20-014115647.html

[2] https://www.indexbox.io/blog/philippines-proposes-sovereign-bitcoin-reserve-with-20-year-lockup/

[3] https://www.altcoinbuzz.io/cryptocurrency-news/philippine-lawmaker-pushes-bill-for-national-bitcoin-reserve/

[4] https://www.ainvest.com/news/bitcoin-news-today-philippines-proposes-strategic-bitcoin-reserve-combat-285-billion-national-debt-2508/

[5] https://www.blockhead.co/2025/08/25/philippine-lawmaker-proposes-strategic-bitcoin-reserve-following-global-trend/

[6] https://www.instagram.com/p/DNxJ8-zUM0o/