DeutschIs another country building a Bitcoin reserve? The Philippines are bringing a new initiative thanks to a member of parliament from the ruling political party NUP. Within five years, the country would invest 10,000 BTC worth over one billion US dollars at the moment, should the concept be successful.
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Philippines Building Their Own Bitcoin Reserve? Law Presented
The Philippines are building their own Bitcoin reserve – at least, if it is up to the Philippine Member of Parliament Miguel Luis Villafuerte. He presented a new law in the country’s parliament yesterday, with which he demands state Bitcoin investments, reports Manilla Bulletin.
Bitcoin reserves are currently a trending topic – both on a corporate and state level. State and private organizations alike want to profit from the rise of the cryptocurrency.
Worldwide, only eight countries are known to currently hold their own Bitcoin. At least three of them are actively building a reserve – the USA, El Salvador and Bhutan. If the Philippines join this trend, it would possibly be the fourth state on earth to buy Bitcoin.
Villafuerte, the author of the bill, now sees the time for crypto investments in his home country. The emerging country could profit massively from the price gains of Bitcoin, the politician argues.
“It is crucial for the Philippines to invest in strategic assets such as BTC to serve important national interests – such as financial stability”, said Villafuerte.
The MP recognizes the growing international role that cryptocurrencies are taking. Accordingly, it would be irresponsible to ignore this trend. Bitcoin could also help to diversify the country’s state reserves and thus better protect them from losses.
By the way: Enthusiasts are also working here in Switzerland on the establishment of a state Bitcoin reserve!
Philippines: this is how many Bitcoins They could Soon Buy
Should the law named HB No.421 be crowned with success, it envisages the purchase of 2,000 Bitcoin per year – and that over a period of five years. At the current market value of around 112,000 US dollars per coin, this corresponds to an investment of 225 million US dollars per year.
Overall, the Philippines would therefore invest 10,000 Bitcoin worth 1.1 billion US dollars at present. After Bhutan and before El Salvador, the island state would thus be the sixth largest state Bitcoin investor.
Villafuerte would like to entrust the Philippine central bank Bangko Sentral ng Pilipinas (short BSP) with the purchase and management of the coins. The concept is to be known under the name Bitcoin Purchase Program (BPP).
In order to profit sufficiently from Bitcoin growth, a holding period of 20 years is initially planned for the coins. During this time, a sale of the investments is prohibited. However, they are willing to adapt details of the law to the respective market situation.
One year before the expiry of the twenty-year holding period, the national parliament is to decide again how to proceed with the Bitcoin reserve. Then, for example, a gradual sale would be conceivable.
How promising Villafuerte’s bill really is cannot yet be definitively determined. As a member of the National Unity Party (NUP), he is part of the ruling coalition and could accordingly receive a lot of support in parliament.
Did you know? Brazil is now also working on a Bitcoin reserve. Its scope: Up to 19 billion US dollars.
