The Philippines seeks to be one of the first Asian countries to adopt Bitcoin as part of its economic strategy, after parliament members introduced a bill aimed at creating a national reserve of 10,000 Bitcoins, as a step to diversify national assets away from the traditional reliance on gold and the dollar.
Project Details
The initiative came through Bill No. 421 proposed by Migs Villafuerte, chair of the Information and Communications Technology Committee in Congress, which suggests that the Bangko Sentral ng Pilipinas (BSP) purchase 2,000 Bitcoins annually over five years, with these amounts to be stored in geographically distributed cold wallets within the country.
According to the plan, the reserve will be held for at least 20 years, to ensure long-term financial stability and protect the economy from fluctuations in global markets.
Strategy Objectives
Villafuerte explained that asset diversification is an important tool to counter economic crises, noting that Bitcoin has recorded higher growth compared to many traditional assets, making it a hedge against rising debt levels in the country.
Strict controls on usage
The bill states that this reserve will be used exclusively to pay government debts, with the central bank governors required to submit a report to Congress a year before the end of the twenty-year term to decide whether to retain the reserve or dispose of part of it.
Even after that, no more than 10% of the reserve will be allowed to be sold every two years, to ensure the preservation of the strategic stock.
Following the footsteps of other countries
The project referenced the experiences of countries such as El Salvador, Switzerland, and Brazil, which have included Bitcoin in their economic policies, while other Asian countries like Malaysia, Thailand, and Hong Kong have begun to study the idea, and Russia is using digital currencies in international trade. If the law is passed, the Philippines will become the first country in Asia to create an official government reserve of Bitcoin.
Tightening oversight of trading platforms
In parallel with this move, the Philippine Securities and Exchange Commission has intensified its actions against unlicensed cryptocurrency trading platforms such as KuCoin, Mexc, Bitget, ByBit, and OKX, requiring them to obtain official licenses and comply with anti-money laundering and customer identity verification requirements.
The new regulations, which came into effect on July 5, aim to protect investors and ensure a more transparent and secure trading environment.
With these dual policies, the Philippines combines openness to investment in Bitcoin with tightening regulatory controls, enhancing its strategic position in the global digital economy.
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