The Philippines has taken a historic step toward sovereign Bitcoin adoption with Congressman Miguel Luis Villafuerte introducing the “Strategic Bitcoin Reserve Act” (House Bill 421). If passed, the measure would direct the Bangko Sentral ng Pilipinas (BSP) to acquire 10,000 BTC over five years—about 2,000 BTC annually—and hold it as a long-term strategic reserve asset.

The proposal reflects growing global momentum for Bitcoin as “digital gold”, offering both diversification from the U.S. dollar and gold, and a potential hedge against rising sovereign debt.

Framework for Custody and Governance

Under the bill, all BTC acquired would be placed in cold-storage facilities distributed across the country, locked in a sovereign trust, and held for at least 20 years.

Key restrictions include:

• No sales or swaps within the first 20 years.
• After the lock-up period, only limited sales allowed—capped at 10% of the reserve within any two-year window, and only for retiring government debt.
• Oversight responsibilities would be shared by the BSP Governor, Department of Finance, Department of Defense, and Securities and Exchange Commission.
• Quarterly proof-of-reserve audits, independently verified, would be published online for transparency.

This strict governance structure is designed to ensure the Bitcoin reserve becomes a long-term national safeguard, not a speculative trading pool.

Supporters: “Early Accumulation Is Critical”

Advocates of the Act argue that Bitcoin’s fixed supply of 21 million coins makes early sovereign accumulation vital. With national debt rising, BTC could serve as a non-sovereign reserve asset alongside gold, strengthening financial stability while insulating the Philippines from external currency pressures.

“Coordinated accumulation by governments will tighten supply, and those who act early will be better positioned for the future,” supporters note.

Domestic Crypto Context

The move comes as the Philippines emerges as one of the top global hubs for retail crypto adoption, with millions of citizens already participating in trading and digital asset services.

Regulators are walking a fine line between innovation and enforcement:

• Sandbox environments are testing new crypto products.
• A wholesale CBDC pilot was recently completed.
• The Securities and Exchange Commission has issued warnings against major offshore exchanges for operating without licenses, vowing stricter oversight.

This dual approach underscores the country’s attempt to balance innovation with investor protection, while still advancing toward formal sovereign Bitcoin adoption.

Global & Regional Context

The Philippines’ proposal comes amid broader sovereign interest in Bitcoin:

• El Salvador remains the global pioneer, making BTC legal tender in 2021.
• The U.S., China, and U.K. collectively hold significant amounts of seized or state-linked Bitcoin.
• In Asia, Hong Kong lawmakers have floated official BTC reserve calls, Bhutan is engaged in state-backed mining, and Russia has shown interest in BTC amid sanctions.
• In South America, Brazil is debating a sovereign Bitcoin reserve framework.

If enacted, the Philippines would become one of the first Southeast Asian nations to establish a sovereign Bitcoin reserve—potentially placing it among the top state-linked holders worldwide.

Path to Becoming Law

House Bill 421 is still in its early legislative stage. It must pass the House of Representatives, secure Senate approval, and obtain the President’s signature before becoming law.

Still, its introduction marks a major milestone: the Philippines is signaling its readiness to join the global wave of nation-state Bitcoin adoption, cementing BTC’s status as a serious instrument of financial sovereignty.