The Philippine Congress is considering a bill that proposes the establishment of a Bitcoin treasury aimed at reinforcing the country's financial stability. The proposal was introduced by Representative Migz Villafuerte.
Proposal for a Bitcoin Treasury
The bill, introduced by Representative Migz Villafuerte, initiates the creation of a treasury comprised of 10,000 Bitcoin (BTC), to be acquired by the central bank, Bangko Sentral ng Pilipinas (BSP), over a period of five years. The proposal outlines an annual purchase of 2,000 BTC, totaling approximately $1.1 billion at current prices. The coins would be held in a trust for at least 20 years.
Strategic Reserve and Oversight
The bill, titled 'Strategic Bitcoin Reserve Act,' also mandates the establishment of a proof-of-reserves system. The BSP governor would be required to provide quarterly reports on holdings, transactions, and control of private keys. The Bitcoin Purchase Program would track these acquisitions and maintain the reserve under long-term supervision.
Impact on the Philippine Economy
Villafuerte noted that the proposed initiative aligns with Bitcoin reserve strategies adopted by other countries, such as El Salvador and Bhutan. Experts suggest that a Bitcoin reserve could assist the Philippines in minimizing inflation and maintaining financial steadiness. This could also lead to the inclusion of cryptocurrency in the government’s financial plans, potentially setting a new precedent in Southeast Asia.
The bill proposing a Bitcoin treasury in the Philippines could transform the country's approach to debt management and economic strengthening, enhancing its influence in global cryptocurrency markets.
