The Philippines could soon become a global trailblazer in sovereign Bitcoin accumulation.
A new bill filed in the country’s House of Representatives proposes the creation of a national Bitcoin reserve totaling 10,000 BTC - worth over $1.1 billion at current prices - potentially placing the archipelago nation alongside Bhutan and ahead of El Salvador in crypto treasury holdings.
The proposed law, officially titled the “Strategic Bitcoin Reserve Act,” was introduced in June by Representative Luis Miguel “Migz” Villafuerte of Camarines Sur and gained public attention this week as it moves closer to congressional deliberation. If passed, the bill would mandate the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, to purchase 2,000 BTC annually for five consecutive years, beginning from its enactment.
Beyond mere accumulation, the legislation establishes a long-term vision for Bitcoin as a sovereign financial hedge, requiring that the assets be held in trust for no less than 20 years and only accessed in specific, extreme scenarios such as national debt retirement.
Why Bitcoin - And Why Now?
In the bill's explanatory note, Villafuerte argues that it is in the “national interest” of the Philippines to diversify its strategic reserves - currently made up primarily of U.S. dollars, gold, and foreign securities - to include “digital gold.” Citing Bitcoin’s 40% average annual growth rate over the past five years and its increasing acceptance as a store of value globally, the lawmaker said the Philippines should “cash in” on the crypto revolution before it’s too late.
“This representation deems it vital that the Philippines stockpile strategic assets such as Bitcoin to serve important national interests such as providing financial stability, among others,” Villafuerte wrote.
The proposal aims to place the Philippines ahead of the curve in terms of crypto adoption at a national level, particularly in Southeast Asia, where no country has yet implemented a state-backed Bitcoin treasury program.
The Bitcoin Purchase Program: A Breakdown
Under the proposed legislation, the Strategic Bitcoin Reserve Act would establish a formal Bitcoin Purchase Program, with the following key provisions:
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Mandatory Acquisition: The BSP must purchase 2,000 BTC per year for five years.
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Minimum Holding Period: The accumulated 10,000 BTC must be held in trust for at least 20 years and cannot be sold, traded, or swapped - except for debt repayment in national emergencies.
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Transparency & Oversight: The BSP would be required to adopt a Proof-of-Reserves protocol, providing quarterly public disclosures on:
- Total Bitcoin held
- Wallet addresses and transaction logs
- Custodial arrangements and private key controls
This level of transparency is notably more rigorous than many sovereign wealth funds or central banks typically offer, and it mirrors crypto-native proof-of-reserve standards employed by exchanges like Kraken and BitMEX.
Joining the Sovereign Bitcoin Club
If the legislation is passed and fully implemented, the Philippines would become one of the world’s largest state-level Bitcoin holders.
- El Salvador, which began its Bitcoin acquisition program in 2021 and adopted BTC as legal tender, currently holds 6,276 BTC, valued at around $700 million, according to its Bitcoin Office.
- Bhutan, through its sovereign investment arm Druk Holding & Investments, holds 10,565 BTC, worth nearly $1.2 billion, according to Arkham Intelligence.
With 10,000 BTC, the Philippines would surpass El Salvador and come within range of Bhutan’s digital treasury, marking a profound shift in Asia-Pacific’s approach to digital assets.
Such a move would also send strong geopolitical signals about currency diversification and monetary sovereignty, especially in a region heavily influenced by dollar-backed finance and Chinese economic expansion.
Strategic Implications: Financial Hedge or Speculative Gamble?
The proposal reflects growing interest among emerging economies to hedge against inflation, currency volatility, and over-reliance on the U.S. dollar. For the Philippines - a nation vulnerable to external debt pressures, capital outflows, and volatile remittance cycles - Bitcoin could serve as a non-correlated, deflationary asset in times of economic stress.
Villafuerte explicitly references these concerns in the bill, noting that Bitcoin’s finite supply and global acceptance make it “an attractive addition to our sovereign reserves in a digitized world.”
However, critics may argue that Bitcoin’s volatility and regulatory uncertainty still make it an unconventional and risky store of value, especially for developing economies. The proposal does not outline risk mitigation mechanisms beyond the long-term lockup provision.
Still, the idea of a 20-year holding period - immune from short-term price fluctuations - suggests the bill envisions Bitcoin as a generational asset rather than a speculative bet.
Broader Context: The Philippines and Crypto Regulation
This legislative development comes as the Philippine Securities and Exchange Commission (SEC) continues to tighten oversight on unregistered crypto exchanges and projects operating within the country.
Despite a pro-regulatory stance, the Philippines has been relatively friendly to blockchain innovation, with government-backed sandbox programs and central bank guidelines for virtual asset service providers (VASPs).
If the Strategic Bitcoin Reserve Act becomes law, it would cement the Philippines’ status as a crypto-forward economy, potentially encouraging regional neighbors like Vietnam, Indonesia, or Malaysia to explore similar policies.
What’s Next: Legislative Path and Central Bank Cooperation
For the Strategic Bitcoin Reserve Act to become law, it must pass through multiple stages in the Philippine legislative process, including committee review, readings in both chambers of Congress, and eventual presidential approval.
Much will depend on the position of the Bangko Sentral ng Pilipinas, which has previously expressed cautious openness to blockchain innovation but has also emphasized the importance of financial stability and risk management.
If enacted, implementation would require the BSP to develop procurement protocols, custody partnerships, and compliance frameworks - including possible integration with global Bitcoin custodians, hardware security modules (HSMs), or multi-sig wallet architectures.
Final thoughts
The Philippines’ proposed Strategic Bitcoin Reserve Act represents one of the most ambitious government crypto policies to date. By institutionalizing Bitcoin as a long-term sovereign asset, the bill seeks to redefine how countries manage reserves in an era of digital finance and decentralized currency competition.
While questions remain about volatility, timing, and central bank support, the proposal underscores a broader truth: Bitcoin is no longer just a retail asset - it’s entering the domain of statecraft.
If passed, the bill could inspire other nations to rethink their reserve strategies - not just with gold or U.S. treasuries, but with digital assets built for a new global economy.