The Philippine legislature is currently considering a groundbreaking proposal that could position the nation’s central bank as a pioneer in Southeast Asia regarding digital asset adoption. The proposal centers around establishing a strategic Bitcoin reserve consisting of 10,000 Bitcoin.
A bill presented to the House of Representatives by Camarines Sur Representative Migz Villafuerte back in June, recently garnered significant attention. The legislation seeks to obligate the Banko Sentral ng Pilipinas (BSP), the Philippines’ central banking authority, to acquire 2,000 Bitcoin (BTC) annually over a five-year period.
Dubbed the “Strategic Bitcoin Reserve Act,” the proposed law aims to direct the BSP to accumulate a Bitcoin stockpile valued at approximately $1.1 billion based on current market rates. The bill stipulates that these assets would be secured within a trust for a minimum of 20 years. This provision essentially restricts the sale, exchange, or disposal of the Bitcoin, except under specific circumstances such as reducing government debt.
“It is the belief of this representation that the Philippines should secure strategic assets like BTC to serve important national interests such as providing financial stability, among others,” Villafuerte stated. He emphasized the urgency for Congress to enact new regulations to diversify the country’s asset portfolio and bolster financial resilience.
Philippine Bill Proposes “Bitcoin Acquisition Initiative”
The legislator characterized Bitcoin as a form of digital gold, emphasizing its impressive annual growth rate of 40% over the past five years and its recent surge to record high valuations.
He argued that the Philippines should seize the opportunity presented by the increasing significance of cryptocurrencies in global markets, referencing El Salvador and other nations that are actively exploring and implementing Bitcoin reserve strategies.
The Strategic Bitcoin Reserve Act would mandate the central bank to execute a comprehensive Bitcoin Acquisition Initiative.
The central bank would be required to maintain the assets for at least two decades before determining whether to continue holding or liquidate them.
The proposed legislation also stipulates that the central bank must implement a “proof-of-reserves” system, compelling the central bank governor to release publicly accessible quarterly reports detailing the Strategic Bitcoin Reserve’s holdings, transactions, and management of private keys.
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The Philippines Could Exceed El Salvador’s Bitcoin Holdings
If approved, the legislation could place the Philippines ahead of El Salvador and close to Bhutan regarding Bitcoin ownership. El Salvador, which is actively acquiring Bitcoin on a daily basis, possesses a total of 6,276 BTC (approximately $700 million), as reported by its Bitcoin Office.
Meanwhile, the Royal Government of Bhutan reportedly holds 10,565 Bitcoin, valued at nearly $1.2 billion, according to data from Arkham Intelligence.
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