Philippines Considers Bitcoin Reserve to Tackle National Debt

Why this matters: This proposal highlights the growing recognition of cryptocurrency as a legitimate asset class and its potential role in sovereign financial strategies. It could set a precedent for other nations looking to diversify their reserves and leverage digital assets for economic stability.

Rep. Miguel Luis R. Villafuerte introduced the Strategic Bitcoin Reserve Act, inspired by commodity-style reserves like the U.S. Strategic Petroleum Reserve. The bill mandates the Bangko Sentral ng Pilipinas (BSP) to acquire 2,000 BTC annually over five years, totaling 10,000 BTC. These holdings are intended to be locked for two decades, and Bitcoin can only be sold or swapped to retire government debt.

The bill ensures resilience by requiring geographically dispersed cold-storage facilities across the country, audited quarterly through public cryptographic attestations and verified by independent third parties. It also stipulates that forks and airdropped assets must be retained for at least five years. The legislation emphasizes that private ownership of BTC will not be infringed, ensuring citizens' crypto holdings are not subject to confiscation.

In January, the Philippines' national debt reached $285 billion, or 60% of its GDP. This initiative aims to leverage Bitcoin's potential to alleviate some of that burden.

It is a proposed bill in the Philippine Congress to create a government-run Bitcoin reserve to address national debt.

The bill mandates the purchase of 2,000 BTC annually over five years, totaling 10,000 BTC.

The holdings would be locked for 20 years and can only be used to pay off government debt.

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