Philippines Considers Strategic Bitcoin Reserve Bill With 10,000 BTC

In the Philippines, a bill is being considered that would allow the central bank to hold up to 10,000 Bitcoin as part of the country’s reserves. Congressman Miguel Luis Villafuerte is a supporter of the Strategic Bitcoin Reserve Act. He calls Bitcoin a “strategic asset” that could help strengthen the Philippines’ financial security in a changing global economy.

The plan is notable for both its size and its clear rules. Instead of sudden purchases or seizures, the bill lays out a careful accumulation plan with strict oversight to keep the process open and accountable.

Philippines Bitcoin Accumulation Plan

The bill provides a clear roadmap for establishing the reserve. The central bank would acquire 2,000 BTC each year for five years, eventually reaching 10,000 BTC. These holdings would then be secured in cold storage with tight oversight to protect against cyber threats.

Importantly, the proposal enforces a 20-year lock-up, preventing the sale or transfer of Bitcoin except for sovereign debt obligations. Even after this period, only a small portion, up to 10%, could be used or sold over any two-year period.

The bill also prioritizes transparency. Quarterly reports would disclose wallet addresses, holdings, and who controls the private keys. This level of openness is unusual for government-managed crypto assets and would set a standard for digital asset governance.

The design of the plan helps reduce market risks. By pacing purchases and limiting withdrawals, the central bank could avoid sudden price fluctuations while keeping a stable reserve for the long term.

Potential Benefits of a Bitcoin Reserve

If the bill passes, the Philippines would lead Southeast Asia by setting up a government Bitcoin reserve. This could increase its influence in global crypto markets and draw interest from international investors.

Experts point out that Bitcoin can offer emerging economies a safeguard against the depreciation of fiat currencies. Kadan Stadelmann, CTO of Komodo Platform, stated that “the Philippines has entered the Bitcoin arms race, and the bill validates Bitcoin as digital gold.” He also noted a potential challenge: Bitcoin is not yet recognized as legal tender in the country, which could affect the bill’s approval process.

In contrast to El Salvador, which has promoted Bitcoin for regular transactions, the Philippines is pursuing a cautious and structured plan. The focus remains on long-term accumulation and fiscal security rather than immediate use by consumers. With a target of 10,000 BTC, it could exceed El Salvador’s 6,276 BTC reserve and nearly match Bhutan’s estimated 10,500 BTC holdings.

This strategy allows the Philippines to gain a first-mover advantage while creating a sovereign hedge against currency volatility, blending innovation with careful planning.

Regulatory Context and Strategic Implications

The bill comes at a time of stricter crypto regulation in the Philippines. 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 new Crypto Asset Service Provider rules.

This level of regulatory attention indicates that lawmakers are seeking to balance innovation with oversight. A well-structured Bitcoin reserve could work within this framework, providing both a long-term store of value and a model for responsible digital asset management.

Analysts suggest the reserve might increase financial inclusion for unbanked populations, as Bitcoin holdings could help stabilize the wider economy. Moreover, the Philippines’ public reporting standards could serve as an example for other countries considering sovereign crypto assets, pointing to a more transparent and accountable approach to digital finance.

What Does It Mean?

House Bill 421 is an important step in how the government handles cryptocurrency. By planning the careful purchase of Bitcoin, the Philippines is testing a strategy that focuses on financial safety, openness, and smart planning.

While challenges remain, this project could change how emerging countries use digital assets. In a region where financial stability is a concern, a government Bitcoin reserve could become a useful tool and show a careful, forward-looking approach to money management.