The Congress of the Philippines is weighing a proposal that could see the country’s central bank establish a strategic reserve of 10,000 Bitcoin, positioning the country among the first in Southeast Asia to adopt Bitcoin as a strategic asset. 

A House of Representatives bill filed by Camarines Sur Representative Migz Villafuerte in June made headlines on Thursday, as it aims to mandate the Banko Sentral ng Pilipinas (BSP), the country’s central bank, to purchase 2,000 Bitcoin (BTC) annually over a five-year period. 

The bill, called the “Strategic Bitcoin Reserve Act,” aims to mandate the BSP to buy 10,000 Bitcoin worth $1.1 billion at current market prices. The bill states that the asset would be locked in a trust for at least 20 years. This would mean that the coins could not be sold, swapped or disposed of, except for when retiring government debt. 

“This representation deems it vital that the Philippines stockpile strategic assets such as BTC to serve important national interests such as providing financial stability, among others,” Villafuerte wrote, adding that it’s imperative for Congress to write new laws aimed at diversifying the country’s assets to ensure financial security. 

Philippine bill proposes “Bitcoin Purchase Program”

The lawmaker described Bitcoin as digital gold, citing its annual growth rate of 40% over the last five years and its recent all-time highs.

He said the Philippines must “cash in” on the increasing role of crypto in global markets, pointing toward El Salvador and other nations already exploring and implementing Bitcoin reserve strategies. 

The Strategic Bitcoin Reserve Act would mandate that the central bank implement a Bitcoin Purchase Program.

It would mandate the BSP to hold the asset for a minimum of 20 years before deciding whether to keep holding or sell it. 

It would also require the central bank to have a proof-of-reserves system. This would compel the central bank governor to provide publicly available quarterly reports on the Strategic Bitcoin Reserve that include information on holdings, transactions and control of private keys. 

Related: Philippines SEC cracks down on unregistered crypto exchanges

The Philippines can surpass El Salvador’s holdings with 10,000 Bitcoin

If approved, the bill could push the Philippines above El Salvador and near Bhutan in Bitcoin holdings. El Salvador, a country that buys Bitcoin daily, has a total of 6,276 BTC (about $700 million), according to its Bitcoin Office. 

Meanwhile, the Royal Government of Bhutan has 10,565 Bitcoin, worth nearly $1.2 billion, according to Arkham Intelligence data. 

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