The Philippines is considering establishing a national reserve of 10,000 Bitcoin to diversify assets and enhance financial security.
The plan to purchase 2,000 BTC each year for 5 years, locked for at least 20 years, is expected to help stabilize the national debt and keep pace with global trends in cryptocurrency.
MAIN CONTENT
The proposal for a reserve of 10,000 Bitcoin was initiated by Congressman Migz Villafuerte.
Strict regulations on the use of the Bitcoin reserve, only to be used for government debt repayment.
The Philippines may become the first Asian country to officially possess a Bitcoin reserve.
What is the proposal to establish a national reserve of 10,000 Bitcoin?
Congressman Migz Villafuerte has introduced Bill 421 to require the Bangko Sentral ng Pilipinas (BSP) to establish a Bitcoin reserve fund of 10,000 units, purchasing 2,000 BTC each year over a period of 5 years.
This reserve will be securely stored in cold storage throughout the country, locked for at least 20 years to protect national assets and stabilize public debt. Villafuerte emphasized the necessity of diversifying assets beyond traditional types like gold and USD.
He stated: "This policy aims to ensure financial security by diversifying reserve asset types."
How are the regulations on the use of the Bitcoin reserve applied?
The bill clearly states: Bitcoin can only be used for government debt repayment. Before the end of the 20-year lockup period, the BSP governor must report to Congress on the status to decide whether to maintain or distribute part of the reserve.
Even after the lockup period, no more than 10% of the reserve can be sold every 2 years. This regulation protects value and avoids strong volatility risks from the cryptocurrency market.
The outstanding growth of Bitcoin compared to other asset classes makes it an effective risk-hedging tool in the context of rising public debt in the Philippines.
What is the state of Bitcoin adoption worldwide?
Many countries such as El Salvador, Switzerland, and Brazil have officially accepted Bitcoin, while Malaysia, Thailand, and Hong Kong are also considering cryptocurrency reserves.
Russia has even applied digital assets in international trade. If the bill is passed, the Philippines will be the first country in Asia to establish a government-managed Bitcoin reserve fund.
What actions is the SEC Philippines taking regarding the cryptocurrency market?
The Philippines Securities and Exchange Commission (SEC) has recently taken action against unregistered cryptocurrency exchanges such as OKX, ByBit, Bitget, Mexc, KuCoin, and Kraken.
According to regulations effective from 12:00 GMT+7 on July 5, 2025, all companies operating in the cryptocurrency sector must be licensed, implement anti-money laundering measures, report suspicious transactions, and verify customer identities.
These measures aim to enhance investor protection and build a more transparent and safer cryptocurrency market in the Philippines.
"Establishing a Bitcoin reserve is an important strategic move to diversify national assets and enhance financial security in a rapidly changing global context."
- Migz Villafuerte, Chairman of the ICT Committee of the Philippine House of Representatives, 2025
Frequently Asked Questions
What is the purpose of the Philippines' reserve of 10,000 Bitcoin?
This is a measure to diversify assets, serve as a risk-hedging tool, and ensure financial security while being used to repay government debt in the future.
How will the Bitcoin in reserve be used?
Bitcoin can only be used for government debt repayment, with strict regulations limiting sales to a maximum of 10% every two years after 20 years of lockup.
Is the Philippines the first Asian country to create a Bitcoin fund?
If the bill is passed, the Philippines will become the first Asian country to establish an official government-managed Bitcoin fund.
How does the SEC Philippines regulate the cryptocurrency market?
The SEC requires cryptocurrency exchanges to register, comply with anti-money laundering regulations, report suspicious transactions, and verify customer identities to protect investors.
Why did the Philippines choose Bitcoin instead of gold or USD?
Bitcoin has outstanding growth and is seen as an effective hedge asset in the context of rising public debt and global market volatility.
Source: https://tintucbitcoin.com/philippines-co-the-giu-10000-btc/
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