25/08/2025
Why I'm SKEPTICAL? 🇵🇭 Strategic 10,000 Bitcoin Reserve Act of the Philippines
This video is a National Heroes Day special from your Crypto Bayanihan Web3 Wallets YouTube Channel. We will discuss a clearer breakdown of the key challenges and constraints surrounding the proposed Strategic Bitcoin Reserve Act (House Bill 421) in the Philippines.
The bill, called the “Strategic Bitcoin Reserve Act,” aims to mandate the BSP to buy 10,000 Bitcoin worth $1.1 billion at current market prices. The bill states that the asset would be locked in a trust for at least 20 years. Watch our video to learn more.
✔️ Source: https://cointelegraph.com/
🚨 Potential Challenges & Constraints:
1. Volatility & Market Risk: Sharp price swings: Bitcoin is highly volatile and can experience deep corrections. The Philippines could find its reserve’s value drastically reduced shortly after purchase.
Long-term lock-in: The 20-year holding requirement removes flexibility to exit positions or reallocate assets in response to financial stress.
2. Liquidity & Flexibility Limitations: Selling restrictions post-lock-up: Even after 20 years, only 10% of holdings can be sold every two years, a highly limited exit strategy.
Debt repayment narrowly defined: Bitcoin can only be sold to retire government debt, further limiting use-case flexibility.
3. Cybersecurity & Custody Risks: High-value attack target: Storing $1+ billion in Bitcoin makes the reserve a tempting target for hackers.
Technical complexity: Managing a secure, multi-location cold storage infrastructure, plus private key custody, demands strong technical expertise, something government institutions may currently lack.
4. Governance & Transparency Challenges: Proof-of-reserves system needed: The Act mandates quarterly public reporting on holdings, transactions, and key controls, a standard but demanding requirement.
Oversight complexity: Coordinating between BSP, Department of Finance, Defense, and SEC for reserve management introduces institutional and procedural complexity.
5. Economic & Fiscal Considerations
High upfront cost: The estimated bill is US-$1.1 billion (~10,000 BTC at current prices), a significant outlay for the national treasury.
Opportunity cost: Buying Bitcoin reduces available funding for other pressing needs social services, infrastructure, or debt servicing.
Ambiguous fiscal outcomes: The strategic benefits are speculative; no firm projections on how this reserve would shield the economy from shocks.
6. Regulatory & Legislative Obstacles: Congressionally untested: The bill is still in early stages; it must navigate committee reviews and floor votes, where opposition, especially from those skeptical of crypto could stall it.
Global regulatory uncertainty: Shifting global policies on cryptocurrencies could affect the reserve’s legal standing or operations.
✅ Final Thoughts: The Strategic Bitcoin Reserve Act is undeniably bold, framing Bitcoin as a long-term, strategic asset for national stability. But its efficacy hinges on navigating profound operational, financial and political hurdles.
1. Is Bitcoin resilient enough for such a conservative, high-stakes investment?
2. Can the BSP and related agencies establish the capability and security infrastructure required?
3. Will legislators and the public accept Bitcoin’s speculative nature as a cornerstone of national financial strategy?
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The content provided in this video is strictly for educational purposes only and does not constitute financial, investment, legal or professional advice. We do not promote or solicit the purchase or sale of any cryptocurrencies, tokens, exchanges or financial instruments. All the information shared on our YouTube Channel is published in good faith and are intended to help viewers understand blockchain and Web3 technologies.
Cryptocurrency markets are highly volatile and involve significant risk. Always do your own research (DYOR), consult licensed financial professionals, and verify any information through trusted sources before making financial decisions.
You are solely responsible for your actions, and we disclaim any liability for losses incurred.
This video is a National Heroes Day special from your Crypto Bayanihan Web3 Wallets YouTube Channel. We will discuss a clearer breakdown of the key challenge...
