Philippine Bill Could Require Central Bank to Buy 2,000 Bitcoin Annually to Build 10,000 Reserve

• Banko Sentral ng Pilipinas to buy 2,000 BTC annually for five years

• The reserve would total 10,000 Bitcoin held in trust for a minimum of 20 years with public reporting requirements.

• Estimated value at current prices: about $1.1 billion; mandates proof-of-reserves and quarterly disclosures.

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The bill would require the central bank to buy 2,000 Bitcoin annually over five years and hold the assets for at least two decades.

The Congress of the Philippines is weighing a proposal that could see the country’s central bank establish a strategic reserve of 10,000 Bitcoin, positioning the country among the first in Southeast Asia to adopt Bitcoin as a strategic asset.

A House of Representatives bill filed by Camarines Sur Representative Migz Villafuerte in June made headlines on Thursday, as it aims to mandate the Banko Sentral ng Pilipinas (BSP), the country’s central bank, to purchase 2,000 Bitcoin (BTC) annually over a five-year period.

The bill, called the “Strategic Bitcoin Reserve Act,” aims to mandate the BSP to buy 10,000 Bitcoin worth approximately $1.1 billion at current market prices. The bill states that the asset will be locked in a trust for at least 20 years. This would mean that the coins cannot be sold, swapped or disposed of, except for when retiring government debt.

“This representation deems it vital that the Philippines stockpile strategic assets such as BTC to serve important national interests such as providing financial stability, among others,” Villafuerte wrote, adding that it’s imperative for Congress to write new laws aimed at diversifying the country’s assets to ensure financial security.

Philippine lawmaker proposes the Strategic Bitcoin Reserve Act. Source: Philippine Congress

What is the Strategic Bitcoin Reserve Act?

The Strategic Bitcoin Reserve Act is a proposed law that would require the Banko Sentral ng Pilipinas to purchase 2,000 BTC annually for five years to create a 10,000 BTC national reserve. The bill mandates a 20-year minimum holding period and quarterly public proof-of-reserves reporting.

How would the BSP implement the Bitcoin Purchase Program?

The bill directs the BSP to run a Bitcoin Purchase Program with clear acquisition schedules, custody controls and proof-of-reserves. It would require:

• Public quarterly reports on holdings and transactions.
• Independent audits and verifiable proof-of-reserves tied to control of private keys.
• Trust-based custody with restricted disposal rules (only for debt retirement).

Why does the bill argue for a Bitcoin reserve?

The lawmaker describes Bitcoin as digital gold and points to an approximate 40% annual growth rate over the past five years as part of the rationale. The bill frames BTC as a strategic asset that could diversify government balance sheets and provide an alternative store of value amid global monetary shifts.

How large would the Philippines’ holdings be compared to other countries?

If enacted, 10,000 BTC would place the Philippines above El Salvador and close to Bhutan’s reported holdings. El Salvador reports 6,276 BTC and Bhutan reportedly holds 10,565 BTC. At recent market prices, 10,000 BTC would be roughly $1.1 billion.

Chart demonstrating Bitcoin holdings by country. Source: Bitbo

What governance and transparency measures does the bill require?

The bill mandates a public proof-of-reserves system. The central bank governor must produce quarterly public reports detailing holdings, transactions and control of private keys. Independent audits and clearly defined custody arrangements are required to ensure accountability and trustworthiness.

When could purchases begin if the law passes?

Timing depends on enactment and implementation details from BSP. The program envisions annual purchases of 2,000 BTC for five years once the BSP establishes custody, proof-of-reserves mechanisms and budgetary frameworks to execute acquisitions responsibly.

Frequently Asked Questions

Will the Philippines surpass El Salvador’s Bitcoin holdings?

If the bill is enacted and all purchases complete, the Philippines would hold 10,000 BTC, exceeding El Salvador’s reported 6,276 BTC and approaching Bhutan’s reported holdings.

How will proof-of-reserves protect citizens?

Public, quarterly disclosures plus independent audits aim to increase transparency and trust, allowing citizens and markets to verify holdings without exposing private keys.

Key Takeaways

• Mandated purchases: BSP would buy 2,000 BTC per year for five years to build a 10,000 BTC reserve.
• Long-term custody: Assets are to be held in trust for at least 20 years with limited disposal options.
• Transparency: The bill requires quarterly public reports, proof-of-reserves and independent audits to ensure accountability.

Conclusion

The Strategic Bitcoin Reserve Act would direct the Banko Sentral ng Pilipinas to build a 10,000 BTC reserve via annual purchases, enforce long-term custody and mandate public proof-of-reserves reporting. This proposal raises questions about fiscal strategy and governance and sets a clear framework for national adoption of Bitcoin as a strategic asset. For ongoing coverage and updates, follow COINOTAG reporting and official congressional releases.