Congress of the Philippines considers a proposal to establish 10,000 Bitcoins as a reserve for the nation’s central banks. This would make the Philippines the first Southeast Asian country to use Bitcoins in a strategy.
House of Representatives legislation filed Camarines Sur representative Migz Villafuerte’s June proposal to require the Banko Sentral ng Pilipinas to purchase 2,000 Bitcoins made news on Thursday.BTC( ) per year over a period of five years.
The bill is also called “Strategic Bitcoin Reserve Act,” The BSP is mandated to purchase 10,000 Bitcoins worth $1.1billion at the current market price. According to the bill, assets would remain in trusts for at least twenty years. It would then be impossible to sell, exchange or dispose of the coins, except when paying off government debt.
“This representation deems it vital that the Philippines stockpile strategic assets such as BTC to serve important national interests such as providing financial stability, among others,” Villafuerte added that new legislation is needed to diversify the assets of the nation to guarantee financial stability.
Philippine Bill Proposals “Bitcoin Purchase Program”
A lawmaker referred to Bitcoin as “digital gold” citing the 40% annual growth over the past five years, and recent highs.
“He said that the Philippines must “cash in” El Salvador, among other countries, has already explored and implemented Bitcoin Reserve Strategies.
The Strategic Bitcoin Reserve Act mandates that a central bank must implement a Bitcoin Purchase Program.
BSP must hold an asset for at least 20 years prior to deciding whether it will keep or sell the asset.
This would require that the central bank have a “proof-of-reserves” system. It would require the governor of the central bank to make quarterly reports publicly accessible on the Strategic Bitcoin Reserve. These would include information about holdings, transaction and the control over private key.
Related: Philippines SEC cracks down on unregistered crypto exchanges
With 10,000 Bitcoin, the Philippines could surpass El Salvador in holdings
The bill, if passed, could put the Philippines ahead of El Salvador in terms of Bitcoin ownership and close to Bhutan. El Salvador is a country with a high Bitcoin holdings. buys Bitcoin dailyIt has 6,276 BTC, which is about $700,000,000. according Bitcoin Office
The Royal Government of Bhutan currently has 10.565 Bitcoin worth $1.2 billion. according Arkham Intelligence provides data.
Magazine: Philippines blocks big crypto exchanges, Coinbase scammer’s stash: Asia Express
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Source: cointelegraph.com
