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The Philippines plans a 10,000 BTC reserve, purchasing 2,000 BTC annually for five years, totaling $1.12 billion, under BSP custody.
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The reserve’s Bitcoin will be locked for 20 years, with sales restricted to 10% every two years, except to retire government debt.
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The BSP will issue quarterly reports with cryptographic attestations and third-party audits to ensure transparency and accountability.
The Philippines has proposed a bill establishing a strategic 10,000 BTC Bitcoin reserve. The offer needs a 20 year lock up. It guides the Bangko Sentral ng Pilipinas (BSP) to purchase 2,000 BTC annually in five years. The reserve would be kept in cold storage in the model of decentralized custody. The step is presented in House Bill (HB) No. 421. Rep. Miguel Luis R. Villafuerte is the author of the bill.
The plan came to light following posts in X that the government was in the process of taking stock of 10,000 BTC, which is currently valued at approximately $1.12 billion. The filing and its salient terms were then reported by mainstream crypto media and finance outlets. The bill text affirms the size, the purchase schedule, and the 20 years minimum holding period.
Source: X
HB 421 would provide a Strategic Bitcoin Reserve. The BSP Governor would establish safe storage facilities countrywide. Such locations would store the Bitcoin of the government on off-line wallets. The reserve would act as the Government Bitcoin cold storage. The control would be in the hands of the BSP. There would be periodic reports issued by the BSP. It would be done by accepted security and auditing guidelines.
Section 5 defines the acquisition program. The BSP would purchase no more than 2,000 BTC annually. The program would operate in a period of five years. The target is 10,000 BTC in total. Buys have to be transparent. They should not disrupt the market. All the coins obtained would be kept in the name of the Republic.
The holding rules are strict. Minimum holding on the program is 20 years of acquisition. This time around,coins cannot be sold, swapped, encumbered or otherwise disposed of. The exception is the retirement of outstanding government debt instruments. The sales would be restricted even after 20 years. The Governor is not permitted to advise the sale of over 10 percent of a reserve in any two year period.
Proof-of-reserves and public reporting
HB 421 needs a “Proof of Reserve System. The BSP should offer quarterly publicly cryptographic attestations. These reports have to display aggregate holdings, transactions and demonstrated possession and control of the private keys. The reports should be placed on the site of BSP. The reports must be verified by an independent third party auditor knowledgeable in cryptographic attestations. The Monetary Board of the BSP would undertake routine monitoring of the reserve, the quarterly reports and the audits.
The explanatory note in HB 421 frames Bitcoin as a strategic asset. It cites long-term expansion of Bitcoin and scarcity of it. It also alludes to the world and policy discussion. It talks of the use of Bitcoin in El Salvador and RESBIt in Brazil. It observes that there have been talks on diversification of reserves in Europe and Asia. It is argued in the note that a reserve would contribute to financial stability. It also refers to increasing debt burden in the country as a motivator to diversify the assets.
The document cites the Philippine debt of November 2024 as $16.09 trillion. The domestic debt was approximately 7.87 % of total. Foreign debt made up the rest. The author of the bill connects such a fiscal context to the necessity of a stockpile of strategic assets. One such asset as suggested in the text is Bitcoin.
How much the reserve could cost
The bill does not establish a certain amount of peso budget. It creates a target number and a pace. The BSP would increase purchases in a five-year span. The outlay would fluctuate according to market price. The current headline value is estimated at about $1.1 billion that estimate represents new spot prices and the 10,000 BTC target. The structure of the proposal will allocate price risk over numerous years.
The buying language focuses on transparent and strategic operations. It also permits schedule changes to be made, depending on the prevailing market conditions. This provision leaves the BSP with freedom not to purchase into sharp rallies or thin liquidity. It assists execution that aims at minimal slippage. It is also in line with good practice of sovereign accumulation of volatile assets. Custody locations that are decentralized reduce operational risk. External verification is aided by use of a third party cryptographic auditor.
The debt-service clause is remarkable. It permits sale in the 20-year period, but only such that it can retire outstanding government debt instruments. A lockup is then followed by guardrails on the bill. The Governor is not to advise sales in excess of 10 per cent of the reserve within any two years. The recommendations in the text to the Congress should be one year prior to the 20-year. In this design, the multi-decade horizon is pegged and there is little discretionary release following the lock.
HB 421 directly defends the privacy of Bitcoin owners. According to it, the Act is not a permit to usurp or damage the private Bitcoin property rights. It further confirms that the government can not interfere with the rights of natural persons or entities to buy, possess, sell or give away Bitcoin within the scope of law. The language is an indication that a state reserve would not change the manner in which it treats private holdings.
Implementation and funding
The bill provides a period within which the BSP may issue rules and regulations by providing 60 days after its effectivity. It accuses an early implementation of the existing budget of BSP and other involved agencies. That would be addressed in the future by the annual General Appropriations Act. The bill has also regular separability and repealing provisions. A notice of the act should appear 15 days following publication in the Official Gazette or in a newspaper of general circulation, and in that case the act shall have force.
At this stage, HB 421 is a proposal. It has to progress into the legislative process. Any purchases would have to be finally approved and enacted. The filing and rationale have been covered by the likes of CoinDesk, Yahoo Finance and other sources. The reports accentuate the reserve size, the lockup, and the debt-service exception. They also mark the sponsor and the necessary role of the BSP.
The explanatory note to the bill refers to an international trend to look at Bitcoin reserves. It cites the legal-tender initiative of El Salvador and the RESBIt concept of Brazil. It indicates that there are debates in Europe and Asia about diversifying reserves and decreasing the dependence on the USD. The note also talks of Russian exploration of digital currencies in international transactions, policy debate in Malaysia and Thailand. These references position the Philippine proposal within a broader policy conversation about digital reserve assets.
Technical custody model
The text directs the BSP to establish a so-called decentralized network of secure storage facilities. Dispersal on a geographical basis would reduce the risk of a simultaneous compromise to a minimum.
The BSP would choose the location on the basis of risk assessment, security, and accessibility. The Governor is obligated to consult defense, finance, ICT and securities regulators. The rule-making of physical and digital security would be assisted by industry experts. The model is intended to reduce the impact of single-point-of-failures as well as to formalize cross-agency governance.
The quarterly proofs of reserves reports should have wallet addresses and cryptographic attestations. It is required that the BSP should place the reports in its site. Each of the attestations should be verified by an independent audit. Such steps are consistent with transparency practices applied by the exchanges and custodians. They permit on-chain balance checks. They also establish a civil society, markets and lawmakers on a record.
