The Philippines is taking action towards implementing Bitcoin (BTC) as part of its national financial strategy.
On August 22nd, Camarines Sur Representative and House Committee on Information and Communications Technology (ICT) chairperson Migz Villafuerte filed the Strategic Bitcoin Reserve Act (House Bill 421).
The bill urges the Bangko Sentral ng Pilipinas (BSP), to diversify the country’s monetary assets by creating a strategic Bitcoin reserve.
Villafuerte debated that Bitcoin’s increasing role in the global economy creates a fundamental tool for boosting financial stability, particularly during economic uncertainty.
Details of the Strategic Bitcoin Reserve Act
According to HB 421, the BSP would be required to purchase 2,000 Bitcoin per year for five years, with those Bitcoin assets being held in a national trust for 20 years.
Villafuerte stressed that this action would not just bolster the country’s monetary stability but also enable the Philippines to take advantage of Bitcoin’s statistical growth.
Furthermore, Bitcoin achieved an all-time high of $124,128 on August 14, further solidifying its status as “digital gold,” a phrase recently reiterated by U.S. Federal Reserve Chairman Jerome Powell.
Villafuerte stated that there is a compelling case for Bitcoin’s inclusion into the country’s reserves since it established a 40% compound annual growth rate over five years, outperforming all other asset classes combined.
Also Read: Arizona’s Bitcoin Reserve Bill Vetoed Over Law Enforcement Concerns By Governor Katie Hobbs
International Inspiration and Global Bitcoin Reserve Momentum
Villafuerte’s proposition has caught the attention of an increasing number of countries that are looking into Bitcoin reserves.
He noted that Switzerland and Poland are considering similar actions, while Hong Kong legislator Wu Jiezhuang proposed that Bitcoin be included in the city’s financial reserves.
In addition, China reportedly owns substantial Bitcoins, and Malaysia is looking to capitalize on crypto regulations to improve its financial infrastructure.
In April, U.S. Senator Cynthia Lummis also introduced a bill that would create a 20-year U.S Bitcoin reserve strategy designed to cut national debt in half, UnoCrypto reported.
The emergence of the global trend shows government’s views on Bitcoin are changing to view it as a hedge against inflation and a banking hedge against market economic insecurity.
Other Countries Advancing Bitcoin Reserve Strategies
The Philippines is now the latest country to explore sovereign Bitcoin reserves.
On June 4, UnoCrypto reported that Pakistan announced its national Bitcoin reserve plan during high-level meetings in Washington, including the use of 2,000 MW of excess energy in its Bitcoin mining and AI data zones.
Also, we reported that Brazil had passed the first stage of its RESBit bill on June 12 in Parliament, adding that they plan to allocate 5% of their national reserves into Bitcoin, accompanied by layers of oversight and transparency.
If passed into law, Brazil would be the second nation in history, after El Salvador, to officially embed Bitcoin into its sovereign reserves.
Notably, there is a shift away from the traditional notions of what government currencies represent, to recognizing cryptocurrency, not just as an asset, but as a key pillar in modern financial strategy.
While the long-term case for Bitcoin still holds, the short-term volatility remains unstable. Today, BTC is at a price of 112,536, down 0.86% in the last 24 hours, and down 5.43% this past week.
The overall cryptocurrency market capitalization remains strong, currently in excess of $2.24 trillion, with a circulating supply of 20 million BTC.
Also Read: Arizona State Passes HB2324 to Create a Bitcoin Reserve Fund from Confiscated Criminal Crypto Assets