Philippine Congressman Proposes Bitcoin Reserve to Attack National Debt
Philippine lawmakers are considering a pioneering proposal to create a government managed Bitcoin reserve as part of a long-term fiscal strategy. The measure tasks the Bangko Sentral ng Pilipinas (BSP) with steadily purchasing Bitcoin over time, while ensuring that private ownership rights remain fully protected. The accumulated reserve would be locked for 20 years, preventing early liquidation and securing its purpose for the nation’s future financial stability.
Once the lock-up period ends, the Bitcoin holdings would be tapped exclusively to retire public debt, providing a unique tool for reducing fiscal burdens. Advocates believe the plan could diversify the country’s reserves, act as a hedge against inflation, and lessen reliance on traditional assets. Critics, however, warn of volatility risks tied to Bitcoin’s unpredictable price swings.
Inside the Philippine bitcoin reserve bill
Rep. Miguel Luis R. Villafuerte’s Strategic Bitcoin Reserve Act orders the central bank to purchase 2,000 BTC per year for five years—10,000 BTC in total. Those holdings would be locked for 20 years and could be sold or swapped only to pay down sovereign debt. After the lock expires, the central bank governor would be limited to disposing of no more than 10% of the stash in any two-year window. The bill mirrors commodity-style buffers like the U.S. Strategic Petroleum Reserve and Canada’s maple-syrup stockpile.
Storage, audits, and citizen protections
The Bangko Sentral ng Pilipinas would operate geographically dispersed cold-storage vaults, minimize single-point failure risk, and publish quarterly cryptographic attestations of balances. Independent third parties would verify those proofs. The legislation also requires forks and airdropped assets to be retained for at least five years. Crucially, the proposal states that private BTC ownership will not be infringed: citizens’ holdings would not be confiscated or restricted under the program.
Debt context and policy goals
In January, the Bureau of the Treasury reported national obligations of roughly $285 billion—about 60% of GDP—highlighting why policymakers are exploring diversified reserves. Supporters argue that adding BTC alongside oil, grain, or even maple syrup stockpiles could strengthen monetary stability, peso convertibility in crises, and long-term fiscal resilience. Critics, meanwhile, may question volatility, operational risk, and opportunity costs versus traditional assets.
What the Philippine bitcoin reserve bill could change
If enacted, the program would position BTC as a strategic, sovereign reserve asset—complementary to fiat, gold, and essential commodities. It could also seed domestic expertise in custody, cybersecurity, and public attestations. For investors and businesses, predictable, rules-based accumulation may reduce policy uncertainty while signaling a long-horizon commitment to digital infrastructure.
Backers say the Philippine bitcoin reserve bill is designed to minimize market impact by spreading purchases over five years and locking coins away, reducing sell-pressure risk.
The bottom line
The proposal still faces committee and floor approvals, but it represents a bold experiment in fiscal policy for the Philippines. By positioning Bitcoin as a sovereign hedge, lawmakers aim to create a carefully managed reserve that operates under strict and transparent controls. This framework is designed to ensure accountability while safeguarding the asset for the long term.
Locked for two decades, the Bitcoin reserve would be tapped only to retire public debt, turning a volatile cryptocurrency into a structured financial tool. If passed, the measure could set a global precedent, showing how digital assets might serve national stability and debt reduction.
FAQs
Q1. What is the Philippine bitcoin reserve bill trying to achieve?
A. The Philippine bitcoin reserve bill seeks to lock 10,000 BTC for 20 years and allow sales only to retire national debt, adding BTC to the country’s strategic reserves.
Q2. How would the Philippine bitcoin reserve bill handle custody and audits?
A. The bill mandates BSP-run, geographically dispersed cold storage with quarterly public cryptographic attestations verified by independent auditors.
Q3. Does the Philippine bitcoin reserve bill affect private BTC ownership?
A. No. It explicitly protects private BTC ownership and prohibits confiscation or new restrictions on citizens’ crypto holdings.
Q4. Why spread purchases in the Philippine bitcoin reserve bill over five years?
A. Dollar-cost-style accumulation—2,000 BTC per year—aims to limit market impact and operational risk.
Q5. What happens to forks and airdrops under the Philippine bitcoin reserve bill?
A. Forked or airdropped assets must be retained for at least five years to preserve the integrity of state holdings.