In the Philippines, a proposal is being considered to establish a strategic bitcoin reserve with potential implications for the country's financial stability.
Proposal for the Reserve
Congressman Miguel Luis Villafuerte introduced bill number 421, which proposes the creation of a "Strategic Bitcoin Reserve." Under this bill, the central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), would be mandated to purchase 2,000 BTC annually over five years, totaling up to 10,000 BTC. The bitcoin will be locked for a 20-year period.
Potential Benefits of the Reserve
The bill highlights that bitcoin's growth has outpaced all other asset classes with an annual growth rate of about 40%. Villafuerte emphasizes that establishing the reserve will allow the Philippines to diversify its assets and ensure financial stability during crises. He also pointed out the necessity for secure asset storage, proposing the creation of a network of secure bitcoin storage facilities.
Global Trends in Bitcoin
In addition to the Philippines, bitcoin has also gained traction in other countries, such as El Salvador, which has already adopted BTC as legal tender. Villafuerte noted that other nations are also beginning to accumulate bitcoin, which could trigger a global wave of BTC accumulation.
The proposed bill to create a strategic bitcoin reserve in the Philippines may significantly impact the country's financial stability, aligning with global trends towards integrating cryptocurrencies into national reserves.
