The Philippine government is considering a bold financial strategy. Recently, Congressman Miguel Luis Villafuerte submitted a striking proposal to the House of Representatives - the "Strategic Bitcoin Reserve Act". The core content of this bill suggests that the government gradually acquire 10,000 Bitcoins over the next five years, making them a long-term strategic reserve asset for the nation.

The bill, known as House Bill No. 421, details a five-year Bitcoin acquisition plan. According to the proposal, the Central Bank of the Philippines will take on the execution responsibilities, purchasing 2,000 Bitcoins each year. These digital assets will be stored in cold storage facilities across the country and will be locked for at least 20 years.

It is worth noting that the bill sets strict restrictions on the use of these Bitcoin reserves. These assets may only be utilized under specific circumstances, such as when sovereign debt is due. Moreover, even after the shortest holding period, reserves liquidated within every two years cannot exceed 10% of the total amount.

As of November 2024, the national debt of the Philippines has risen to 16.09 trillion pesos (approximately 285 billion USD), with nearly 68% being domestic debt. In this economic context, supporters believe that diversifying national reserves into assets beyond gold and dollars is crucial for maintaining financial stability. This move is particularly significant as more and more countries around the world are beginning to formulate their own Bitcoin strategies.

If the bill is ultimately passed, the Philippines will become another country to join the ranks of Bitcoin reserves, which will undoubtedly attract widespread attention on the international financial stage. This initiative not only reflects the Philippines' open attitude towards emerging digital assets but also demonstrates the country's forward-thinking approach in responding to changes in the global economy.

However, this proposal has also raised some questions. Will the high volatility of the Bitcoin market affect the stability of national reserves? How can the government ensure the security of these digital assets? These are issues that need further discussion and resolution.

In any case, the introduction of the "Strategic Bitcoin Reserve Act" marks a significant step for the Philippines in the field of digital currency, and it provides a noteworthy case for other countries to consider. As the bill undergoes further scrutiny, we will be watching closely for the Philippines' final decision on this innovative financial strategy.