Post
Topic
Board Economics
Re: Philippine House has introduced a bill to establish a strategic bitcoin reserve.
by
dezoel
on 30/08/2025, 05:41:23 UTC
I have been active in the thread about El Salvador making Bitcoin a legal tender and I don't think the country bought Bitcoin because they wanted it to save their economy maybe from collapse. They just had a comprehensive plan that includes a bitcoin city which comprises several projects like mining facilities, hotels,  resorts, etc.  Sadly, the country couldn't go ahead with these projects, but they kept buying Bitcoin.  El Salvador’s Bitcoin investment has been profitable, and it seems they have a long-term approach.  
Well their initial plans for buying bitcoin didn't worked as plan but then they made the right approach, being among one of the first countries recognized for owning Bitcoin as a reserve is a big advantage to the country, they might not benefit from it now since it's in reserve for the future but later on when they've reserved it for decades, they'll begin to enjoy the benefits of accumulating it now for the future, this is something other countries too that wish to boost their economy in the future should emulate and it's good that the government of Phillipines has taken that bold step in trying to buy such amount of bitcoin to reserve for the future.
Because there is a huge difference between "let's put some money into bitcoin from the taxes" and "let's make everyone forced to accept bitcoin". The way they turned bitcoin into legal tender got pushback when they first tried it, because they forced bitcoin to be accepted, since it was legal tender, anyone who wanted to pay with it, had the right, and you had to accept it.

Eventually, that turned into, whoever prefers, and eventually that turned into you are not forced on anything at all, and just basically overall not legal tender in that sense. This is why you should consider how this could be very risky subject. But, putting some of the money into bitcoin? There is nothing wrong with that, it is a great investment for them.