Philippines Proposes 10,000-BTC Strategic Reserve Locked for 20 Years

The Philippines is making headlines in the crypto space over a bill submitted by a lawmaker for the government to hold Bitcoin (BTC).

The bill aims to mandate the Philippines’ central bank to create a strategic Bitcoin reserve of 10,000 BTC, with a 20-year lockup.

Lawmaker Proposes a Long-Term BTC Strategy for the Philippines

In June, House of Representatives member Miguel Luis R. Villafuerte submitted the “Strategic Bitcoin Reserve Act” to the Philippine Congress.

In his proposal, Villafuerte called on the country’s central bank, Bangko Sentral ng Pilipinas (BSP), to purchase 2,000 BTC annually over five years.

In total, this would mean accumulating 10,000 BTC, worth over $1.1 billion in a sovereign reserve within five years. This bill treats Bitcoin as a long-term store of value, similar to gold reserves, rather than a trading asset.

The proposal follows a long-term approach to BTC accumulation. According to the bill, BTC in the strategic reserve would remain locked up for 20 years. During this period, the central bank could not swap or sell Bitcoin, except to retire government debt.

Even after the 20-year lock-up period, the government can only sell 10% of the reserve within a period of two years. This tight control ensures long-term stability and security of the Strategic Bitcoin Reserve.

Additionally, BSP would be mandated to publish quarterly reports on the Strategic Bitcoin Reserve. These reports would include details of total BTC holdings, transactions, and private key controls.

A Growing Recognition of Bitcoin as a Reserve Asset

Villafuerte described Bitcoin as digital gold, citing its recent all-time highs and 40% annual growth rate over the last five years.

If approved, the bill would make the Philippines one of the first countries in Asia to create a strategic Bitcoin reserve. Villafuerte wants the Philippines to benefit from the increasing role of crypto in global markets.

Countries like the U.S. and El Salvador are already exploring and implementing Bitcoin reserve strategies. According to its Bitcoin Office, El Salvador has a total of 6,279 BTC, valued at more than $701 million.

Meanwhile, data from Arkham Intelligence revealed the Royal Government of Bhutan has 10,565 BTC, worth over $1.1 billion.

In the U.S., the government currently holds about 200,000 BTC, confiscated through criminal and civil proceedings. Strategy Chairman Michael Saylor has stressed that the U.S. Treasury plans to explore ways to acquire more Bitcoin.

What is Happening in the Bitcoin Market?

The price of Bitcoin experienced significant downtrends over the weekend, which has now continued into the new week.

The Bitcoin dominance has also continued to drop, losing almost 10% in 5 weeks. Meanwhile, the U.S spot BTC exchange-traded funds (ETFs) saw $1.17 billion outflows last week, the 2nd largest since launch.

Investor sentiment quickly turned cautious as profit-taking and macro fears weighed on inflows. Some market players have attributed the recent drop in BTC to asset investment giant BlackRock.

The firm recently deposited 1,885 BTC to Coinbase Prime, which triggered liquidations worth $17.60 million in BTC.

As of this writing, the BTC price has decreased by 3.3% over the past 24 hours to trade at $111,178. This is one of the lowest levels recorded since Bitcoin hit an all-time high of $124,000 earlier this month.

However, there is still hope for Bitcoin traders and investors in the days ahead.

Market sentiments remain bullish as indicated by the rising trading volume. This key metric has increased by 53% over the previous day to $80.4 billion.