In a bold move to tackle the Philippines’ burgeoning national debt, Congressman Miguel Luis R. Villafuerte has introduced a groundbreaking bill proposing the creation of a government-run Bitcoin reserve. The “Strategic Bitcoin Reserve Act,” unveiled in Manila, seeks to stockpile 10,000 BTC over the next five years, with the sole intention of reducing the country’s debt burden. This initiative aligns with previous discussions, as detailed in Philippines Lawmaker Proposes 10,000 BTC Strategic Reserve.
A New Era in Sovereign Finance
Cryptocurrency has increasingly found its footing as a viable asset class on the global stage, and the Philippines appears ready to embrace this change. Villafuerte’s proposal instructs the Bangko Sentral ng Pilipinas (BSP) to annually acquire 2,000 BTC—a move that would make the nation one of the largest sovereign holders of Bitcoin. “The State shall promote and maintain economic prowess,” the bill asserts, “especially in times of crisis.” It highlights the necessity of diversifying the country’s financial assets, underscoring Bitcoin’s rising significance in the world economy.
Villafuerte’s plan is ambitious, with strict rules governing the Bitcoin stash. Locked away for two decades, the BTC reserve can only be tapped to pay down the national debt, ensuring a long-term commitment to fiscal responsibility. Once the 20-year lock-in period expires, any sale of Bitcoin will be capped at 10% of the total reserve within a two-year span.
Security and Storage: The Cold Hard Facts
The proposal doesn’t just stop at acquiring Bitcoin. It emphasizes secure storage, with plans to establish cold-storage facilities scattered across the archipelago. These facilities will undergo quarterly audits, verified through public cryptographic attestations and independent third-party checks. This rigorous approach aims to instill public confidence and maintain transparency.
Interestingly, the bill takes a leaf from the playbook of traditional commodity reserves, reminiscent of the U.S. Strategic Petroleum Reserve or even Canada’s maple syrup stockpile. Villafuerte argues that such reserves provide a buffer against economic instability, offering a financial lifeline in turbulent times.
Crypto’s Rising Tide
According to the Bureau of the Treasury, the Philippines’ national debt reached $285 billion earlier this year—alarming figures that underscore the need for innovative solutions. By leveraging Bitcoin, Villafuerte believes the nation can not only diversify its asset holdings but also safeguard the peso’s convertibility. This strategy is further explored in Philippine bill charts path to strategic reserve with 10,000 Bitcoin.
Of course, not everyone is sold on the idea. Critics question the volatility of Bitcoin and its suitability as a reserve asset. Yet, others see it as a forward-thinking strategy that positions the country at the forefront of crypto adoption. “It’s a calculated risk,” notes financial analyst Jaime de Guzman. “But with proper management and security, it could pay off in a big way.”
Forks, Airdrops, and Public Trust
The bill also covers the treatment of forks and airdropped assets, mandating a minimum retention period of five years. Importantly, it reassures citizens that private Bitcoin ownership will remain unaffected, with no risk of government confiscation. This clause seeks to quell any fears of overreach and bolster trust in the government’s crypto strategy.
As cryptocurrency continues to weave its way into the fabric of global finance, the Philippines’ bold initiative raises intriguing questions about the future of sovereign wealth management. Could this be a model for other nations grappling with debt? Or does it simply reflect the growing pains of an evolving economic landscape?
One thing’s for sure: the world will be watching. Whether the Strategic Bitcoin Reserve Act becomes law or not, it marks a significant moment in the ongoing dialogue between traditional finance and the disruptive force of digital currencies.
Source
This article is based on: Philippine Congressman Proposes Bitcoin Reserve to Attack National Debt
Further Reading
Deepen your understanding with these related articles:
- Bitcoin vs. sovereign bonds: Why are some investors making the shift?
- Fed Instructs Banks to Adopt Crypto Without Fear: Bitcoin Hyper to Pump
- U.S. Federal Reserve’s New Supervision Chief Sold on Bringing Crypto to Finance
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
