The Philippine Congress is considering a bill aimed at creating a strategic bitcoin reserve of 10,000 BTC through the country’s central bank. This marks a significant step toward cryptocurrency integration into the financial system.
Details of the Bitcoin Reserve Bill
The proposal, filed by House Representative Miguel Luis Villafuerte, aims to purchase 2,000 bitcoins annually over five years, amounting to approximately $1.1 billion. All purchased bitcoins would remain locked in trust for at least 20 years, with restrictions on selling or trading except for retiring government debt.
Importance of the Bill for the Philippine Economy
Villafuerte referred to bitcoin as 'digital gold,' citing its 40% average annual growth rate over the past five years. The bill addresses the rising sovereign debt burden of the Philippines, which reached 16.09 trillion pesos ($275 billion) by November 2024. The legislation also includes strict storage requirements that the central bank must comply with.
Global Competition for Bitcoin Reserves
The Philippine proposal highlights the escalating global competition for bitcoin. If enacted, the Philippines would become the first Asian nation to legislate a sovereign bitcoin accumulation strategy. Several regional countries, including Malaysia and Thailand, are also exploring similar approaches.
In conclusion, the proposed strategic bitcoin reserve bill could significantly impact the economic landscape in the Philippines and set a precedent for other countries in the region, shaping new approaches to digital asset management.
