Recently, a bill for the establishment of a Bitcoin strategic reserve was proposed in the Philippines, aiming to acquire 10,000 BTC as a financial safety net for the nation.
Objectives and Details of the Bill
Philippine Congressman Migz Villafuerte has proposed a new law called the Strategic Bitcoin Reserve Act. The main idea of the bill is for the Philippines to buy and hold 10,000 BTC as a hedge against global economic volatility and to ensure financial stability. Support for the act includes the potential to address the country's debt, which has reached $281.6 billion.
Bitcoin Accumulation Plan
The bill proposes that the total accumulation will take place over five years, with 2,000 coins to be purchased each year. The responsibility for this task is assigned to the central bank, Bangko Sentral ng Pilipinas (BSP). The lawmakers have also designed a safe and transparent environment for the treasury, incorporating distributed secure storage facilities along with quarterly audits and public reporting.
Advantages and Risks of Bitcoin Reserving
The choice of Bitcoin over other assets is justified by its scarcity and adoption by countries like El Salvador and several European nations. With the current price of Bitcoin at $115,900, the Philippine reserve of 10,000 coins could be valued at $1.1 billion in the future, despite the possibility of short-term price dips.
The Strategic Bitcoin Reserve Act proposed in the Philippines opens a new chapter in discussing the use of cryptocurrencies for national financial management. If realized, this could be an important step toward enhancing the country's economic stability.
