Philippines Bitcoin reserve proposal could reshape the country’s economic strategy by locking 10,000 BTC for 20 years to reduce national debt.
The Philippine Congress is considering a bold new approach to economic stability — building a government-run Bitcoin reserve locked away for 20 years to help reduce the nation’s rising debt burden.
Rep. Miguel Luis R. Villafuerte has introduced the Strategic Bitcoin Reserve Act, directing the Bangko Sentral ng Pilipinas (BSP) to buy 2,000 BTC annually over the next five years, creating a 10,000 BTC national reserve. These funds would be strictly off-limits except for paying down government debt.
Why Bitcoin? Diversifying national assets
According to Villafuerte, the measure would help the Philippines safeguard its economy:
“The State must ensure monetary stability and diversify its financial assets to protect the peso, especially in times of crisis.”
The bill highlights Bitcoin’s growing role in the global financial system and frames the reserve as similar to commodity-style stockpiles, such as the U.S. Strategic Petroleum Reserve and Canada’s maple syrup stockpile.
Strict storage and auditing rules
The BSP would build secure cold-storage facilities across multiple locations in the country to hold the Bitcoin. These would undergo quarterly audits, verified by independent third parties using public cryptographic proofs.
Private BTC ownership remains untouched — the legislation promises no interference or confiscation of citizens’ holdings.
Forks and airdrops must be retained for at least five years, ensuring even additional assets from Bitcoin’s blockchain events are preserved.
Debt reduction as primary goal
The proposal comes as the Philippines’ national debt hits $285 billion, or 60% of GDP, according to the Bureau of the Treasury (January 2025).
After the 20-year lock period, the BSP governor could release no more than 10% of the Bitcoin reserve in any two-year period, preventing sudden liquidation and preserving the long-term nature of the reserve.
Global implications
If passed, this bill would make the Philippines one of the first nations to treat Bitcoin as a sovereign reserve asset with such rigid holding rules. It reflects a growing trend of governments exploring cryptocurrency not only as a speculative tool but as a strategic hedge against economic uncertainty.
