The Philippines is on the verge of a significant financial evolution as Representative Migz Villafuerte unveils House Bill 421, proposing the establishment of a national Bitcoin (BTC) reserve. This initiative aims to fortify the nation’s economic stability by acquiring a total of 10,000 BTC over the next five years, managed by the Bangko Sentral ng Pilipinas (BSP).
Innovative Legislation for Financial Strength
House Bill 421 outlines a strategic plan for the BSP to construct a Bitcoin reserve designed to enhance the country’s financial resilience. By diversifying its monetary assets, the Philippines seeks to leverage Bitcoin’s growing reputation as a robust store of value. The digital currency has seen exhilarating growth, reaching an impressive high of over $124,000 before experiencing minor fluctuations.
The legislative proposal directs the BSP to acquire 2,000 BTC each year, eventually amassing a total of 10,000 BTC. This reserve is intended for long-term stability, requiring a mandatory holding period of 20 years. Villafuerte stated:
For the Philippines, it is essential to accumulate strategic assets like BTC to advance our national interests, notably in enhancing financial stability.
Throughout this two-decade span, the BTC reserve will not be subject to trading, unless it’s to alleviate government debt obligations. One year prior to the holding term’s conclusion, the BSP governor will assess whether to maintain or gradually disburse the reserve holdings.
Post the minimum holding period, a cap will be instituted, allowing a maximum reduction of 10% of the total BTC holdings every two years.
The Monetary Board (MB) will oversee the proposal to guarantee accountability and those updates regarding Bitcoin reserves will be featured in the BSP’s quarterly disclosures.
Global Shift Toward BTC Reserves
Villafuerte emphasized that the Philippines is not alone in this venture; nations worldwide are beginning to explore the establishment of their own Bitcoin reserves. For example, the U.S. government has been assessing its potential BTC reserve options since the recent presidential election.
Inspired by the United States, various countries are eager to implement similar reserve strategies. Recently, a group of lawmakers in Chile proposed the initiation of a Bitcoin reserve to enhance their national economic strategy.
Moreover, Pakistan’s Minister for Crypto and Blockchain announced plans to establish the country’s inaugural Bitcoin reserve, while Bhutan has already amassed a substantial Bitcoin stockpile.
Brazil’s Vice President’s chief of staff expressed that ignoring the global rise of Bitcoin as a dependable monetary system is no longer viable. As of now, Bitcoin is trading at approximately $112,420, reflecting minor fluctuations within a 24-hour period.
