[Exclusive] Rep. Villafuerte: Bitcoin Reserve Could Help Philippines Manage Sovereign Debt, Even Without Selling a Single Bitcoin

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House Bill No. 421, which seeks to establish a Strategic Bitcoin Reserve for the Philippines, could provide the country with a long-term tool to address its growing national debt, according to its author, Congressman Miguel Luis Villafuerte. 

Bitcoin Could Help Manage PH Debt

In a response to BitPinas, Villafuerte cited the latest Bureau of the Treasury (BTr) data, which noted that the Philippines’ national debt currently stands at ₱17.56 trillion, which is approximately $310 billion at ₱56 per U.S. dollar, with ₱848 billion spent on interest payments in 2024 alone.

He explained that if the government acquires 10,000 BTC today and holds it for 20 years, the potential appreciation, historically averaging over 40% annually, could allow the country to service a significant portion of its debt.

“Not only that, but in 20 years the global financial ecosystem may be vastly different and be in a place where we may never have to sell our Bitcoin to service the debt. Financial instruments may be available to safely leverage our Bitcoin, which presumably will have appreciated by several orders of magnitude, and we can utilize the yields for Filipino development initiatives.”

Miguel Luis Villafuerte, Representative, 5th District, Camarines Sur

As per the recent report of the Bureau of Treasury (BTr), the Philippines’ national government debt reached ₱16.31 trillion as of end-January 2025, up ₱261.47 billion, or 1.63%, from the previous month. 

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The report noted that the increase was driven by higher domestic debt, which rose to ₱11.08 trillion due to net issuance of government securities, and external debt, which climbed to ₱5.23 trillion from new foreign loan availments and currency valuation effects from a weaker peso. Meanwhile, government-guaranteed obligations declined slightly to ₱346.27 billion as repayments outpaced valuation adjustments.

Moreover, Senate Finance Chair Sherwin Gatchalian also recently warned that each Filipino now effectively owes ₱142,000 as the national debt hit ₱17 trillion, noting that borrowings have outpaced economic growth since 2023 and could leave the Marcos administration with the highest debt accumulation in history if unchecked. 

Prospects in Congress

Will the bill gather support from lawmakers?

On whether the measure will gain broad support or face hurdles, Villafuerte pointed out that the 20th Congress is one of the youngest in Philippine history, with 60% of members under 45 years old. He admitted that many questions from lawmakers are expected but expressed confidence that their openness to innovation, coupled with strong public interest in cryptocurrency, improves the bill’s chances of passage.

“If the people want it, there will always be a chance. Just one of the major regulated crypto exchanges here in the country reports over 15 million accounts and users. Which indicates that there is a significant percentage of the population that is not only aware of cryptocurrency, but active participants in this new global economic movement.”

Miguel Luis Villafuerte, Representative, 5th District, Camarines Sur

In addition, Villafuerte suggested that if the measure does not pass, integrating a similar strategy into the country’s sovereign wealth fund while continuing efforts on financial literacy could be a possibility. 

“The plan would be to continue to educate Filipinos on financial literacy and where Bitcoin and crypto fits into not only the country’s position, but into their everyday lives as well.  We can have an open dialogue with other monetary focused government agencies as well, because if historically they are open to investing in Fine Art and baskets of US equities, Bitcoin should definitely be part of their considerations as well.” 

Miguel Luis Villafuerte, Representative, 5th District, Camarines Sur

Only a Matter of Time

He added that BTC has been one of the best-performing assets in recent decades and believes it is only a matter of time before governments and institutions adopt it.

“Personally, I think it is only a matter of time until we see Bitcoin held by governments and in institutions around the world. I think that Bitcoin will inevitably be crucial for nation building and securing the country’s future financial resilience.”

Miguel Luis Villafuerte, Representative, 5th District, Camarines Sur

This article is published on BitPinas: Villafuerte: Bitcoin Reserve Could Help Philippines Manage Sovereign Debt

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