Philippines Proposes Strategic Bitcoin Reserve to Hedge National Debt

Highlights:

• The Philippines is proposing a Strategic Bitcoin Reserve bill to purchase 10,000 BTC within five years.
• Under BSP oversight, the Bitcoin reserve would be locked up for a period of 20 years.
• The bill aims to reduce dollar reliance and boost economic resilience.

House Bill 421 has been introduced in the Philippines to establish a national Bitcoin reserve. The bill was filed by Congressman Miguel Luis “Migz” Villafuerte back on June 30, 2025. According to the bill, the central bank, Bangko Sentral ng Pilipinas (BSP), will be directed to purchase 2,000 Bitcoin annually over five years. This would see them end up with a total of 10,000 BTC.

The Strategic Bitcoin Reserve will not be touched over the next 20 years, according to the bill. The BSP is only allowed to sell the assets so as to pay off the national debts. The transparency will be achieved through annual reports and public disclosures of proof-of-reserve. The bill states that the remaining assets will be kept in cold wallets that will be distributed in various geographical locations.

Philippine Congressman Migz Villafuerte has filed House Bill 421, proposing the establishment of a Philippine Strategic Bitcoin Reserve. The bill calls on the Bangko Sentral ng Pilipinas (BSP) to purchase 2,000 Bitcoin annually for five years — a total of 10,000 BTC — and hold… pic.twitter.com/EVrroiMg8j

— Wu Blockchain (@WuBlockchain) August 22, 2025

Villafuerte stressed the necessity to abandon the old forms of reserves, such as gold and the U.S. dollar. He described Bitcoin as a “digital gold” that can safeguard the economy of the nation during global shocks. The bill aims to limit exposure to short-term volatility by locking in assets over the long term.

Philippines’ debt was 16.09 trillion pesos ($275 billion) as of the end of 2024. The bill claims that digital assets can contribute to financial stability as liabilities continue to increase. Furthermore, the proposal follows a trend all over the globe, where nations are adopting Bitcoin as a reserve asset.

Implications for the Philippine Economy and Policy

Should the bill be passed, the Philippines would become the first country in Asia to implement a Bitcoin accumulation plan. The bill introduces a procedural plan whereby BSP has direct control over the purchase and protection of the reserve. To hold accountability over the operations, a committee will be in place.

The proposed plan limits the liquidation of reserves by permitting sales to only retire debt after the 20-year lock. In case Congress agrees, sales may start gradually and top at 10% after two years. This long-term horizon is intended to ensure that the financial position of the country is stabilized. Bitcoin has also entered the institutional mainstream with the exchange-traded funds (ETFs), which have led it to a record high of $124,128 on August 14, 2025. The lawmaker believes that this performance warrants its inclusion as a national asset.

Global Momentum for Strategic Bitcoin Reserves

Other countries, such as El Salvador, Pakistan, and Russia, have adopted or proposed similar initiatives about Bitcoin. Switzerland, Poland, and Hong Kong have also explored the possibility of including Bitcoin in the reserves. Consequently, the Philippines proposes Strategic Bitcoin reserve is part of this rising global shift. In March of this year, President Trump signed an executive order to create a U.S. Bitcoin asset reserve. In addition, lawmakers are discussing a national Bitcoin reserve consisting of seized BTC. 

Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.

The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…

— David Sacks (@davidsacks47) March 7, 2025

Meanwhile, Max Keiser, a famous Bitcoin supporter, stated that the U.S. would risk being overtaken by other countries. He rebuked privately issued stablecoins as inappropriate since they profit from Treasury bill investments and channel that profit into Bitcoin. Keiser argued that these companies might undermine the capacity of the U.S. government to establish its own Bitcoin reserve.