The Philippine Congress proposes that the Central Bank purchase 10,000 Bitcoin over 5 years to strengthen national security and stabilize the debt structure.
The HB 421 bill presented by Congressman Miguel Luis R. Villafuerte proposes that the Bangko Sentral ng Pilipinas accumulate Bitcoin to diversify assets and strengthen national financial stability.
MAIN CONTENT
The BSP will buy 2,000 Bitcoin each year for 5 years, totaling 10,000 Bitcoin.
This amount of Bitcoin is expected to be stored for 20 years to strengthen national security.
The bill aims to diversify the asset portfolio and ensure financial stability in Vietnam in the face of the growing trend of cryptocurrency development.
What does the Central Bank of the Philippines intend to do with Bitcoin?
The Central Bank of the Philippines (BSP) is proposed to purchase a total of 10,000 Bitcoin over 5 years, with the goal of creating a strategic reserve to strengthen national security and stabilize the debt structure.
This idea stems from the need to diversify assets in the context of cryptocurrency increasingly playing an important role in the global financial system. This also gives the BSP additional tools to manage public debt and mitigate financial risks.
Who proposed the HB 421 bill and what are its main contents?
The HB 421 bill was introduced by Congressman Miguel Luis R. Villafuerte in the Philippine Congress to allow the BSP to purchase Bitcoin periodically with a total of 10,000 over 5 years.
The main content revolves around establishing a strategic Bitcoin reserve, ensuring asset portfolio diversification, and creating long-term financial stability. This also reflects the growing awareness of the increasing importance of cryptocurrency in the international financial market.
What does it mean to accumulate Bitcoin for 20 years?
The expected storage time for Bitcoin is 20 years to enhance financial security and provide stability for the national debt structure of the Philippines.
This long period allows the BSP to take advantage of the long-term growth in Bitcoin's value while minimizing the impact of short-term volatility in the cryptocurrency market. This creates a strategic reserve that can support national finance when needed.
"Establishing a strategic Bitcoin reserve will help diversify assets and provide financial stability in the context of globalization and the vigorous development of cryptocurrency."
– Congressman Miguel Luis R. Villafuerte, speaking at the Philippine Congress, August 22, 2023
What are the potential impacts of the Central Bank accumulating Bitcoin?
The BSP's accumulation of Bitcoin could help the country stand stronger against global financial volatility while reinforcing the position of cryptocurrency within the mainstream financial system.
Additionally, this model could open up a trend of digital asset accumulation for other central banks, promoting adaptation and innovation in managing national assets.
What are the current asset portfolio diversification solutions of central banks?
Many central banks today are expanding their asset portfolios with non-traditional assets, including gold, foreign exchange, and are increasingly interested in cryptocurrency.
Officially accumulating Bitcoin is an important preliminary step to enhance risk resilience, increase liquidity, and optimize the asset structure.
Frequently Asked Questions
How many Bitcoin will the Central Bank of the Philippines purchase each year?
The BSP plans to buy 2,000 Bitcoin each year for 5 years, totaling 10,000 Bitcoin.
Why is the BSP storing Bitcoin for 20 years?
The reserve is held long-term to enhance financial security and ensure the stability of the national debt structure.
Who proposed the HB 421 bill?
The bill was presented by Congressman Miguel Luis R. Villafuerte in the Philippine Congress.
How does purchasing Bitcoin affect national finance?
This helps diversify the asset portfolio, reduce financial risk, and enhance stability in the national debt system.
How can the value of stored Bitcoin change?
Bitcoin can increase or decrease in value suddenly, but long-term storage helps minimize the risks of short-term volatility.
Source: https://tintucbitcoin.com/philippines-de-xuat-du-tru-2-000-btc/
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