Lawmakers in the Philippines are reviewing a proposed bill, which, if passed, would allow the country’s central bank to hold up to 10,000 BTC as part of a strategic Bitcoin reserve.
Summary
- House Bill 421 directs the Philippine central bank to accumulate Bitcoin for 5 years.
- If passed, the Philippines would become the first Southeast Asian country to legislate such a reserve.
House Bill 421 has been aptly named the Strategic Bitcoin Reserve Act and was presented to the House of Representatives by Congressman Miguel Luis Villafuerte. In his bill, the congressman touted Bitcoin as a “strategic asset” that could help the Philippines secure its financial future.
Villafuerte’s proposal calls for a sovereign Bitcoin reserve, one that, unlike the holdings of many other nations, would not arise from seizures or forfeitures but through periodic accumulation.
Under the proposal, the Philippine central bank would buy 2,000 Bitcoin a year for five years, allowing it to accumulate up to 10,000 Bitcoin, which would then be held in cold storage under strict oversight.
Once secured, the reserve must remain untouched for 20 years, with a few exceptions tied to national debt obligations. The bill places clear legal constraints on the central bank, prohibiting any sale, swap, or disposal of the assets during the lock-up period unless the country needs to pay off sovereign debt.
The bill also introduces a broader framework around transparency and accountability. It calls for the implementation of a proof-of-reserves system, which would require the BSP governor to issue quarterly public reports detailing the reserve’s Bitcoin holdings, wallet addresses, and control over private keys.
If passed, this level of reporting would place the Philippines at the forefront of sovereign digital asset management, offering a degree of visibility rarely seen in government-held crypto reserves.
The legislation even imposes post-lockup guardrails. After the 20-year period, any liquidation of the Bitcoin reserve would still be capped; no more than 10% may be sold or used within any two-year window.
Early mover advantage
Should this bill move forward, the Philippines would become the first Southeast Asian nation to legislate the creation of a sovereign Bitcoin reserve through formal statute. That distinction alone could boost the country’s profile in global crypto circles.
“Bitcoin gives emerging markets like the Philippines the opportunity to go around western financial capital and safeguard themselves from depreciating fiat currencies,” Kadan Stadelmann, Chief Technology Officer, Komodo Platform, told crypto.news.
“The Philippines has entered the Bitcoin arms race, and the bill validates Bitcoin as digital gold. Nonetheless, the Philippines has not made any law legalizing Bitcoin, which might not bode well for the bill’s passing,” he added.
Nonetheless, Stadlemann believes the Philippines could benefit from having a Bitcoin reserve due to Bitcoin’s potential for appreciation, and the fact that “it also can help financial inclusion in a nation where many are unbanked.”
Nations like El Salvador have made headlines for adopting Bitcoin as legal tender, in contrast, the Philippine initiative is arguably more conservative and structurally grounded, focused on long-term accumulation and fiscal insulation rather than retail-level integration.
With 10,000 Bitcoin, the Philippines would surpass El Salvador’s current reserve, which stands at around 6,276 BTC, and close in on Bhutan’s reported holdings of over 10,500 BTC.
The proposal arrives at a time when the Philippines is tightening its grip on crypto regulation. As previously covered by crypto.news, earlier this month, the Securities and Exchange Commission warned ten major crypto exchanges, including OKX, Bybit, and KuCoin, for operating without proper registration under the newly enacted Crypto Asset Service Provider rules.