Philippine Congressman Proposes Bitcoin Reserve to Tackle National Debt

A bold crypto initiative is stirring debate in the Philippines. Congressman Miguel Luis R. Villafuerte has introduced a bill that would establish a government-managed Bitcoin reserve, locked for 20 years, with its sole purpose being to repay the nation’s rising debt, which now exceeds $285 billion—around 60% of GDP.

Proposal: 10,000 BTC Over Five Years Under the proposed Strategic Bitcoin Reserve Act, the country’s central bank, Bangko Sentral ng Pilipinas (BSP), would purchase 2,000 BTC annually over a five-year period. This would build a total reserve of 10,000 BTC, which would remain untouchable for two decades. These Bitcoin holdings could only be sold or exchanged to service national debt. After the 20-year lock-up, the central bank governor would be allowed to release up to 10% of the assets within two years.

Inspired by Oil and Maple Syrup Reserves Villafuerte said his legislation draws inspiration from the U.S. Strategic Petroleum Reserve and Canada’s strategic maple syrup stockpile. He argued that with cryptocurrencies becoming a key part of the global financial system, the Philippines must diversify its assets and strengthen financial resilience. “The state must support economic strength and monetary stability. Bitcoin is becoming part of the global financial landscape, and we must be prepared,” the congressman wrote in the bill.

Strict Safeguards and Audits The Bitcoin reserve would be held in geographically distributed cold storage facilities across the country. It would undergo quarterly public cryptographic attestations, along with audits by independent third parties. The bill also mandates that forks and airdropped assets must be held for at least five years. Crucially, it emphasizes that private Bitcoin ownership will not be affected, ensuring citizens’ holdings remain safe from confiscation.

Bitcoin as a National Strategy? If passed, the Philippines would become one of the first nations to officially integrate Bitcoin into its strategic reserves. Such a move could strengthen the country’s ability to manage debt burdens while positioning it as a pioneer in sovereign-level crypto adoption.

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