A new legislative proposal in the Philippines aims to diversify the country’s sovereign reserves by steadily accumulating Bitcoin, reflecting a growing global trend of digital asset adoption in national treasuries.
Details of the proposed bill
Congressman Miguel Luis “Migz” Villafuerte has filed House Bill 421, which would mandate the Bangko Sentral ng Pilipinas (BSP) to purchase up to 2,000 Bitcoin annually for five years, reaching a maximum reserve of 10,000 BTC.
The legislation specifies that the Bitcoin must be stored across multiple secure facilities under central bank oversight to minimize risks and enhance resilience.
A push for financial security
Villafuerte argues that diversifying beyond traditional assets such as gold and US dollars will strengthen the Philippines’ financial stability.
He described Bitcoin as “digital gold” that could protect the country’s balance sheet from global shocks and reduce reliance on the US dollar.
The congressman pointed to examples in El Salvador, Brazil, Switzerland, and Poland, as well as US Senator Cynthia Lummis’ ongoing proposal, as inspiration for the move.
Long-term holding requirements
The bill imposes strict conditions: the BSP would be prohibited from selling or encumbering the Bitcoin for at least 20 years, except to retire government debt.
One year before the lock-up ends, the central bank must report to Congress on whether to extend the holding period or begin gradual sales, limited to 10% of the reserve every two years.
Regional and global significance
If enacted, the Philippines would become the first Asian country to legislate a sovereign Bitcoin accumulation strategy, joining a growing list of nations exploring bitcoin reserves as part of their financial policy.
