Philippine Lawmaker Proposes Strategic Bitcoin Reserve Following Global Trend

A Philippine congressman has introduced legislation to establish a Strategic Bitcoin Reserve, proposing the government purchase 2,000 Bitcoin annually for five years through the central bank as global interest in cryptocurrency reserves accelerates.

House Representative Miguel Luis Villafuerte filed the bill in the lower chamber, citing Bitcoin's 40% compound annual growth rate over five years and its recognition as "digital gold" by Federal Reserve officials. The proposed reserve would be held in trust for 20 years under management by Bangko Sentral ng Pilipinas, the country's central bank.

The legislation comes as the Philippines faces mounting fiscal pressures, with sovereign debt reaching 16.09 trillion pesos ($280 billion) by November 2024, an increase that represents 32% foreign debt and 68% domestic obligations. Villafuerte argued that diversifying into bitcoin could help safeguard the nation's financial standing amid growing debt burdens.

"The increasing significance of BTC in ensuring financial and economic prowess across continents makes it imperative for the country to take significant legislative measures," Villafuerte stated in the bill's explanatory note, positioning the reserve as providing financial stability for national interests.

The Philippine proposal follows a global wave of government bitcoin adoption initiatives. El Salvador pioneered sovereign bitcoin reserves after making the cryptocurrency legal tender, while Brazil introduced its RESBit program to allocate international reserves to Bitcoin.

In Asia, Hong Kong legislators have advocated integrating Bitcoin into the city's financial reserves, while Bhutan operates state-owned mining operations and retains mined bitcoin. Russia has begun using bitcoin for international transactions to circumvent Western sanctions, with President Vladimir Putin calling the cryptocurrency "unstoppable," Villafuerte said.

The bill notes Bitcoin's fixed supply cap of 21 million tokens, with approximately 19.9 million already mined as of late 2024. This scarcity factor has driven institutional adoption as governments seek alternatives to traditional reserve assets amid currency debasement concerns.

Current global government Bitcoin holdings show the United States leading with 207,189 Bitcoin, followed by China at 194,000 and the United Kingdom holding 61,000 tokens, according to the legislation. The proposed Philippine reserve of 10,000 bitcoin over five years would represent a significant position among sovereign holders.

Bitcoin recently reached all-time highs above $124,000 before settling around current levels above $112,000, contributing to growing institutional interest from both corporate treasuries and government entities seeking inflation hedges.

The bill requires immediate legislative approval to begin implementation, though passage through both chambers of Congress and presidential signature would be needed before the central bank could commence purchases. Philippine financial regulators have previously established frameworks for cryptocurrency operations while maintaining cautious oversight of digital asset activities.