A leader of the House of Representatives has urged the Bangko Sentral ng Pilipinas (BSP) to seriously consider establishing a strategic Bitcoin (BTC) reserve, following the cryptocurrency’s strong market rally that pushed its value past $125,000 this month, from just below $100,000 at the end of 2024.
Camarines Sur Rep. Miguel Luis ‘Migz’ R. Villafuerte, chairman of the House Committee on Information and Communications Technology, said this surge should prompt the BSP to ‘take a long, hard look’ at adopting Bitcoin as part of the country’s monetary diversification strategy for long-term financial security.
‘Given current market conditions and more favorable U.S. policies seen to support further crypto growth, experts predict Bitcoin could reach between $165,000 and $250,000 before the year ends,’ Villafuerte said.
He explained that such bullish forecasts ‘make a compelling case for the BSP to begin building a strategic BTC reserve-an opportunity for the Philippines to benefit from the growing role of digital assets in the global financial system.’
To enable this, Villafuerte said Congress must pass new legislation aimed at diversifying national reserves, similar to other countries’ stockpiles of strategic assets. He is the author of House Bill (HB) 421, which seeks to establish a ‘National Bitcoin Reserve.’
Bitcoin briefly dipped to $105,000 during a recent market sell-off but quickly rebounded to around $115,000-another sign, Villafuerte said, of its market resilience.
‘In order for the State to promote and maintain economic prowess, including monetary stability and the convertibility of the peso, especially in times of crisis, the 20th Congress needs to write new legislation aimed at diversifying our assets to ensure financial security by stockpiling on strategic assets such as BTC,’ he said.
Villafuerte said the Philippines currently holds dollar and gold reserves, but the rising global importance of Bitcoin underscores the need for complementary assets. ‘BTC’s significance in driving economic resilience worldwide makes it necessary for us to take decisive legislative action,’ he added.
He noted that Bitcoin-introduced in 2009 as a decentralized alternative to traditional assets like cash, gold, and real estate-has since become the world’s best-performing financial asset, appreciating by a third this year alone. U.S. Federal Reserve Chairman Jerome Powell has even likened it to ‘digital gold.’
Financial giants also share the optimistic outlook. J.P. Morgan has said Bitcoin remains undervalued compared to gold and could rise 40% higher, while UK fintech firm Finder forecasts a potential surge to $250,000 later this year.
Under HB 421, the proposed Strategic Bitcoin Reserve would mandate the BSP to acquire 2,000 BTC annually for five years-a total of 10,000 Bitcoins-to be held in trust for at least 20 years. The BSP Governor would lead a Bitcoin Purchase Program (BPP), ensuring transparent and market-sensitive acquisitions, subject to periodic review based on global conditions.
The bill further stipulates that no BTC from the reserve may be sold, auctioned, or otherwise disposed of within the 20-year holding period, except for the purpose of retiring government debt instruments. After the holding period, the BSP may recommend selling no more than 10% of the reserve every two years.
HB 421 also mandates the BSP Governor to coordinate with the Departments of Finance, Defense, and ICT, the Securities and Exchange Commission, and industry experts to guarantee the physical and digital security of the proposed Bitcoin Reserve.
‘The establishment of a strategic Bitcoin reserve is a forward-looking step toward financial sovereignty and digital readiness for the Philippines,’ Villafuerte said.