Bitcoin Reserve Idea Gains Traction Among Nation States, With Bold Proposal from The Philippines

Philippine Congressman Miguel Luis Villafuerte introduced House Bill 421 proposing the country purchase 2,000 Bitcoin annually for five years, totalling 10,000 BTC held for at least 20 years.
The legislation includes strict provisions preventing sales except for government debt repayment, with post-holding period sales capped at maximum 10% of assets every two years.
Currently only a few countries maintain Strategic Bitcoin Reserves, whilst Brazil considers a US$17 billion reserve and the US advances its own SBR proposals.
Asian nations like China, South Korea and Japan are exploring stablecoins pegged to local currencies instead, as nation states collectively hold 2.4% of all available Bitcoin.

The Philippines could be the latest country to follow the trend to add some of a nation’s reserves to cryptocurrencies, such as Bitcoin (BTC). Congressman Miguel Luis Villafuerte has introduced a proposal for a bill to establish what has become known as a Strategic Bitcoin Reserve (SBR).

The proposed bill would see the 115-million-strong archipelagic country buy 2,000 BTC annually for five years – accruing a total of 10,000 Bitcoin. The idea is then to HODL these BTC for at least 20 years.

The lawmakers said that the “increasing significance of BTC in ensuring financial and economic prowess across continents makes it imperative for the country to take significant legislative measures.”

The bill, simply called House Bill 421, would also include provision to prevent sales or swaps other than for paying off government debt. After the holding period, the central bank may sell a maximum of 10% of assets in any two-year period.

There are only a handful of countries currently holding BTC in reserves, with some others considering proposals.

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Strategic Bitcoin Reserves and Stablecoins Pegged to Local Currencies

Currently, El Salvador and Bhutan hold some assets in an SBR, while the latter also uses hydroelectric power to mine Bitcoin; El Salvador uses a volcano-fuelled geothermal power plant for that purpose.

Several other nations are in varying stages of establishing a BTC reserve: Brazil is currently deliberating whether to establish a US$17 billion (AU$26.2 billion) reserve.

The US has also made advancements on an SBR, while Australia has said it won’t follow the same path.

Some other Asian countries have gone down a different route, eyeing stablecoins rather than Bitcoin reserves. China, South Korea and Japan all recently started deliberating stablecoins backed in their own currency – often as a move to push back on US dollar dominance.

As for Bitcoin reserves, data shows that nations currently hold 2.4% of all the 21 million BTC ever available. The US and China are by far the largest holders, leaving the United Kingdom far behind.