- The Philippines is considering a legislative proposal to establish a national Bitcoin reserve of 10,000 BTC, locked securely for a minimum of 20 years.
- The proposal, authored by Representative Miguel Luis R. Villafuerte, aims to protect the reserve for future generations.
- The plan includes a total reserve size of 10,000 BTC, an annual acquisition plan by the Bangko Sentral ng Pilipinas (BSP), a lock period of 20 years, and sale restrictions.
In a bold and historic step, the Philippines is considering a legislative proposal to establish a national Bitcoin reserve of 10,000 BTC, locked securely for a minimum of 20 years. The proposal, contained in House Bill (HB) No. 421, is authored by Representative Miguel Luis R. Villafuerte, who argues that Bitcoin’s scarcity, resilience, and growing role in global finance make it a valuable long-term strategic asset for the country. This move could place the Philippines among the first Asian nations to formally adopt Bitcoin as a reserve asset—joining the global conversation on using cryptocurrencies to strengthen financial systems, diversify reserves, and reduce reliance on traditional fiat-dominated monetary structures.
What the Bill Proposes
At its core, HB 421 lays out a comprehensive framework for how the Philippines would accumulate, store, and manage its Bitcoin holdings. The plan is ambitious, structured, and deeply conservative in terms of protecting the reserve for future generations.
- Total Reserve Size: 10,000 BTC.
- Acquisition Plan: The Bangko Sentral ng Pilipinas (BSP) will purchase 2,000 BTC annually for five years.
- Lock Period: Bitcoin acquired must remain untouched for 20 years, except in rare cases such as debt repayment.
- Sale Restrictions: Even after the 20-year lock, no more than 10% of the reserve can be sold every two years.
- Custody Model: Decentralized, offline (cold storage) centers spread across the country.
- Transparency Rules: Mandatory quarterly Proof-of-Reserves reports, cryptographic verification, and independent third-party audits.
Rep. Villafuerte positions this as a long-term shield against debt and financial instability, emphasizing that Bitcoin’s limited supply could help protect the nation’s future economic interests.
Why the Philippines Wants a Bitcoin Reserve
The Philippines currently faces a massive national debt. As of November 2024, total debt stood at ₱16.09 trillion, with nearly 8% owed domestically and the rest to foreign creditors. For policymakers like Villafuerte, this debt burden underscores the need for a bitcoin reserve that goes beyond gold and foreign currencies. Bitcoin’s appeal lies in its decentralization and scarcity. Unlike fiat currencies that can be printed by central banks, Bitcoin has a hard cap of 21 million coins. This makes it resistant to inflationary pressures and attractive as a hedge against long-term economic volatility. Villafuerte’s explanatory note also references international precedents:
- El Salvador, which famously adopted Bitcoin as legal tender and has accumulated BTC in its reserves.
- Brazil’s RESBIt initiative, aimed at creating a sovereign Bitcoin reserve system.
- Ongoing discussions in Europe and Asia, where countries like Russia, Malaysia, and Thailand are exploring digital currency policies to reduce dependence on the U.S. dollar.
In this light, HB 421 is not an isolated experiment but part of a growing global trend toward integrating Bitcoin into sovereign financial systems.
The Mechanics of Acquisition
The bill’s Section 5 spells out a measured acquisition strategy. Rather than making a lump-sum purchase, the BSP would spread its buying over five years, acquiring up to 2,000 BTC annually. This gradual approach serves several purposes:
- Avoiding Market Disruption – A sudden government purchase of 10,000 BTC could spike prices or create liquidity issues. By spreading out buys, the BSP minimizes market shocks.
- Cost Averaging – Bitcoin is notoriously volatile. Annual purchases allow the government to average out entry prices, reducing exposure to sudden price swings.
- Flexibility – The BSP retains discretion to adjust purchases depending on market conditions, meaning it can pause or slow buying during price spikes.
At today’s market value, 10,000 BTC is worth around $1.1 billion (₱63 billion), though the actual cost will fluctuate depending on future Bitcoin prices.
A Strict Lock-in Period
One of the most remarkable aspects of the proposal is the 20-year lock. Once Bitcoin is purchased, it cannot be sold, traded, or transferred for at least two decades, except for the specific purpose of paying down government debt. Even after this period, sales are capped at 10% of the reserve every two years. This ensures the strategic bitcoin reserve remains intact for future generations, while also giving the government flexibility to gradually monetize holdings if needed. The BSP Governor is also required to notify Congress at least one year before the 20-year lock expires, ensuring legislative oversight and accountability.
Proof-of-Reserves and Transparency
Transparency is at the heart of HB 421. The bill mandates a quarterly Proof-of-Reserves system, a best practice in the crypto industry that allows anyone to cryptographically verify the government’s Bitcoin holdings. Key provisions include:
- Wallet Address Publication – Public disclosure of the reserve’s wallet addresses.
- Third-Party Audits – Independent cryptographic audits by external experts.
- Public Reports – Quarterly reports posted on the BSP’s official website.
This system not only builds trust among citizens but also demonstrates to international markets and regulators that the Philippines is adopting global best practices in digital asset management.
Custody: Decentralized and Offline
Security is one of the greatest concerns when managing a nation-scale Bitcoin reserve. To address this, HB 421 requires the BSP to develop a decentralized custody model:
- Storage Centers: Multiple cold-storage facilities distributed across the Philippines.
- Agency Coordination: Collaboration with defense, finance, ICT, and securities regulators to ensure multi-layered security.
- Risk Mitigation: Reducing the risk of single points of failure through decentralization.
- Offline Security: Bitcoin will be kept in cold wallets, disconnected from the internet to prevent hacking.
This design mirrors practices used by top global custodians, ensuring the reserve remains virtually immune to cyberattacks.
Protecting Private Bitcoin Holders
HB 421 makes it clear that the proposal does not interfere with individual rights. Private citizens and companies in the Philippines will still be free to buy, sell, hold, or transfer Bitcoin under existing laws. This assurance is important for maintaining public trust. Unlike some fears of state overreach, the government’s strategic bitcoin reserve is separate from private ownership rights and does not involve seizure or restrictions on individual holdings.
Implementation Timeline
If passed, HB 421 sets a tight timeline for implementation:
- Within 60 days, the BSP must issue rules and guidelines for the reserve.
- Initial funding will come from the BSP’s existing budget, with future allocations covered under the General Appropriations Act.
- The bill will take effect 15 days after publication in the Official Gazette or a major newspaper.
At this stage, the bill remains a proposal. It must pass both chambers of Congress and be signed into law before any purchases occur. Nonetheless, its introduction has already sparked major attention from international outlets such as CoinDesk and Yahoo Finance.
Global Context
If the Philippines follows through, it will join a small but growing list of nations exploring Bitcoin-backed reserves.
- El Salvador has already integrated Bitcoin into its monetary system, with President Nayib Bukele frequently announcing BTC purchases.
- Brazil is pushing forward with its RESBIt plan, positioning itself as a Latin American leader in Bitcoin adoption.
- Russia, Malaysia, and Thailand are exploring central bank digital currencies (CBDCs) and Bitcoin-related policies.
- Europe has debated reserve diversification away from the U.S. dollar, with digital assets increasingly part of the conversation.
For the Philippines, adopting Bitcoin as a strategic reserve asset could signal a new era of financial sovereignty, strengthening its position in the Asia-Pacific region.
The Philippines’ House Bill 421 represents one of the most ambitious Bitcoin-related proposals ever introduced in Asia. By aiming to secure 10,000 BTC over five years and locking it for two decades, the country would send a powerful message: that Bitcoin is no longer a fringe asset but a serious tool for national financial strategy.
If passed, the Philippines would position itself as a pioneer in the global move toward digital reserve diversification, potentially inspiring other nations in the region to explore similar measures. The success or failure of this initiative could shape not only the country’s financial trajectory but also the future of Bitcoin in sovereign wealth strategies. As the bill moves through the legislative process, all eyes will be on Manila. For now, HB 421 signals a new chapter in the Philippines’ quest for financial independence and resilience in a rapidly evolving global economy.
Disclaimer: CryptopianNews shares this for learning and info only. It’s not meant to be financial or investment advice. Crypto markets change a lot and move quickly. Investing in them can be risky. You should always look into things yourself. Talk to a trained financial advisor before making any choices about investing.
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