Miguel Luis R. Villafuerte, a Philippine Congressman, has recently submitted House Bill 421. The House Bill 421 proposes the establishment of a strategic Bitcoin Reserve to bolster Philippine economic sector. As the bill suggests, the Bangk Sentral ng Pilipinas (BSP) should buy 2,000 Bitcoin ($BTC) per annum over upcoming 5 years, making a staggering total of 10,000 $BTC. The bill promotes the use of the Strategic Bitcoin Reserve’s holdings for protecting the financial stability of the country while also fortifying national security.

Philippine Policymaker Proposes 20-Year Bitcoin Lock with House Bill 421 to Bolster Economy

In his House Bill 421, the Philippine Congressman has persuaded the country’s central bank BSP to buy total 10,000 $BTC equally over 5 years to back economy. Following this purchase, the bill proposes locking them for up to twenty years while endeavoring to ensure Philippine economy’s stability. At the same time, the bill also underscores the growing significance of cryptocurrency in the worldwide economy as a hedge against economic and debt crises.

The legislation focuses on the development of geographically distributed and decentralized cold storage provisions across the country to safeguard Bitcoin purchased under the program. Additionally, the observation of these provisions will reportedly come under the BSP Governor. In this respect, the Governor will partner with the Department of Finance, Securities and Exchange Commission, and Department of Defense to guarantee maximum protection and compliance with global standards.

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Apart from that, the proposed Bitcoin reserve will secure $BTC holdings as well as retain the airdrops and forks linked with the Bitcoin addresses operating under the government. The respective assets will reportedly be securely kept and banned from any transfers or sale within the 1st 5 years, unless the lawful authorization. Additionally, the legislation also stresses resilience against failures or attacks with the development of diverse distributed facilities across different country-wide locations.

Philippines Could Become Early Adopter of National Bitcoin Reserve

As the House Bill 421 proposes, the acquisition of 2,000 $BTC per annum for 10 years (equaling 10,000 $BTC) and their 20-year lockup will significantly boost Philippines’ financial status. In addition to this, for transparency, the BSP is persuaded to implement quarterly Proof of Reserve mechanism that would require $BTC holdings’ cryptographic attestations, validated by autonomous 3rd-party auditors. Overall, if approved, Bitcoin Strategic Reserve Act could place Philippines among the earliest Southeast Asian jurisdictions to officially integrate the flagship cryptocurrency into the national reserves.