A new legislative proposal in the Philippines aims to incorporate Bitcoin into the country's official reserves.
Proposal for a Strategic Bitcoin Reserve
Congressman Miguel Luis Villafuerte introduced the 'Strategic Bitcoin Reserve Act', which mandates the Bangko Sentral ng Pilipinas (BSP) to acquire 2,000 Bitcoin annually over five years, totaling 10,000 BTC.
Management of the Reserve and Transparency
Bitcoin will be stored in cold storage facilities nationwide and will be locked for a minimum of 20 years. Access to the reserve will only be possible under strict conditions, such as for paying down sovereign debt. The BSP governor will manage the reserve, supported by the Department of Finance, the Department of Defense, and the SEC. The act mandates quarterly proof-of-reserve audits conducted by independent third parties.
Global Trends in Bitcoin Accumulation
The lawmaker stated that purchasing Bitcoin for the strategic reserve could trigger a wave of global BTC purchases. As of August, 11 governments collectively hold 480,196 BTC, representing about 2.29% of Bitcoin's total supply. The US leads with 198,022 BTC, followed by China and the UK. Countries like El Salvador and Brazil are already actively using Bitcoin as a reserve asset.
The proposed Strategic Bitcoin Reserve Act in the Philippines highlights the growing interest of governments in cryptocurrencies as essential long-term assets.
