The adoption of Bitcoin is currently experiencing a notable acceleration in some unusual areas, such as accumulating it as part of national strategic reserves. This is an operation that the Philippine government is currently evaluating, following the introduction of a recent bill.
Will the Philippines build a strategic Bitcoin reserve?
Donald Trump’s arrival in the White House coincides with a significant shift in the perception of the cryptocurrency sector. This adoption is evident in many areas, including the establishment—still pending—of a strategic Bitcoin reserve… and other crypto projects considered to be made in the USA.
This innovative strategic choice has already been pursued for several years by countries such as El Salvador and Bhutan, to the point where this small kingdom lost in the Himalayas now has a fortune in BTC estimated at 40% of its gross domestic product (GDP).
This is an opportunity for other countries to consider embarking on this new adventure. Indeed, bills are appearing all over the world to submit this possibility, such as in the Philippines. Code name: “Strategic Bitcoin Reserve Act.”
This is a bill in the House of Representatives, initiated by Camarines District Representative Miguel Luis Villafuerte. He wants to establish a strategic Bitcoin reserve to create “a stockpile of an essential resource that can be released in times of crisis or supply disruption.”
While the Philippines holds reserves in dollars and gold, the growing importance of BTC in maintaining financial and economic power across continents makes it imperative for the country to adopt meaningful legislative measures to maximize pressing economic opportunities and protect our financial position.
Bill
2,000 BTC per year over a period of 5 years
The initiative dates back to June 30, but it has just resurfaced in the local media following Miguel Luis Villafuerte’s stated intention to mandate the Philippine central bank to purchase Bitcoin. The goal is to schedule an annual purchase of 2,000 BTC over a period of 5 years.
In fact, this operation represents a total of 10,000 BTC, at an estimated overall cost of approximately $1.12 billion at the current BTC price (57 billion Philippine pesos). This amount is considered very appropriate by the representative of the Camarines district, given that “the country’s sovereign debt reached 16.09 trillion pesos at the end of November 2024” (approximately $300 billion).
The holding period for this strategic Bitcoin reserve would be set at two decades before any resale could be considered by the Philippine central bank, which would be responsible for holding it and publishing a quarterly report on the actual status of its BTC stocks.
If it does indeed come to fruition, this BTC stockpile could rival current strategic reserves such as those of El Salvador (6,246 BTC) or Bhutan (11,286 BTC). However, it remains difficult to know what the situation will be in five years’ time.
