- The House of Representatives initiated a bill to allow the Philippines’ central bank to establish a Bitcoin reserve.
- HB 421 aims to diversify the country’s treasury with 10,000 BTC.
The Republic of the Philippines is making a big move on Bitcoin (BTC). According to a local news publication, The Manila Bulletin, the country’s House of Representatives recently submitted House Bill (HB) No. 421 to allow the Bangko Sentral ng Pilipinas (BSP) to accumulate the premier digital asset for a strategic reserve.
Bitcoin Reserve Under HB 421
Miguel Luis Villafuerte, representative of the fifth district of the province of Camarines Sur, initiated the measure, believing that “the time is ripe” for the Philippines’ central bank to put up a Bitcoin strategic reserve due to its increasing value. He explained that stockpiling digital assets is of “important national interest” because it offers financial stability and other benefits.
The congressman urged the 20th Congress to establish new legislation aimed at diversifying the BSP’s reserve and capitalizing on the increasing role of cryptocurrencies on the global stage. To nail his point, he also lectured his colleagues about how Bitcoin has already aligned itself with traditional assets such as cash, gold, and real estate.
The Bitcoin Purchase Program (BPP) proposed under HB 421 lets the BSP purchase up to 2,000 BTC annually within five years. This will allow the central bank to acquire up to 10,000 BTC.
Additionally, HB 421 proposes that every purchase be made transparently and strategically to minimize market disruption. The acquisitions must be adjusted, as needed, based on market conditions.
Moreover, the bill requires the BSP to hold its Bitcoin stash for no less than 20 years. This will prevent the institution from selling, swapping, auctioning, loaning, or disposing of the BTC it possesses in accordance with BPP. The only exception to the rule is if the central bank were to use the assets to retire outstanding debt instruments.
Furthermore, HB 421 mandates the BSP governor to furnish a report to Congress a year before the end of the minimum holding period, with their recommendations on whether it should continue to hold the Bitcoin reserve or gradually sell it.
Bitcoin Performance Heading to the Weekend
Bitcoin spiked significantly on the way to the weekend following the speech of US Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium in Kansas on Friday. BTC notably surged between a $111,678.95 low and a $117,377.40 high in the last 24 hours heading to Saturday, as the US central bank head signaled a potential interest rate cut in September.
However, Powell steered a bit on the safe side, stating that Fed officials are still debating and evaluating how to address the tariff-related inflation. If the wheels go into motion for the rate cut, it will result in lower borrowing costs. It could spur more investor appetite in high-risk assets like tech stocks, Bitcoin, and other crypto assets.
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