What happened?
The Philippines is moving towards establishing a Bitcoin reserve, thanks to a new legislative proposal. This bill suggests that the government purchase 10,000 BTC over the next five years for strategic long-term holdings. The Bitcoin will be kept in distributed cold storage for at least two decades and can only be sold under strict conditions to address sovereign debt.
Who does this affect?
This initiative affects several groups, including the Philippine government, financial institutions, and Bitcoin investors. By building a national Bitcoin reserve, the country aims to enhance its financial stability and diversify its assets. Moreover, the bill includes provisions to protect individual crypto ownership rights, impacting businesses and private holders.
Why does this matter?
The move by the Philippines could significantly impact the global Bitcoin market by potentially driving demand. As more countries view Bitcoin as a strategic asset, supply constraints may tighten further with a capped limit of 21 million Bitcoin. This legislation signifies a growing trend of government interest in Bitcoin as a valuable financial asset, which could also influence global market dynamics and prices.