Chilean legislators led by Andres Villagran, an advocate of national mining interests, are backing new legislation intended to establish a Strategic Bitcoin Reserve (SBR). Villagran has been actively reaching out to government officials, emphasizing its economic benefits for Chile.
The Journey Towards Embracing Bitcoin in Chile
Villagran has seen her initiative gain significant traction throughout 2023 and into 2024, engaging with more than 20 members of parliament and several key ministers regarding the advantages of Bitcoin. Further assisting this dialogue are Dennis Porter of Satoshi Act Fund and Simon Collins from Stackr – drawing from their legislative experiences and advocacy of responsible Bitcoin mining practices respectively.
In November 2024, the team made an effective presentation to Chilean government representatives that included discussions with allies of President Gabriel Boric as well as members from both Frente Amplio and Socialist Party parties. Their presentation highlighted successful precedents from different U.S states to support their position; additionally Deputy Gael Yeomans proposed creating a “Bitcoin Bench” dedicated to research and legislative drafting on behalf of Bitcoin.
However, while there may be enthusiasm among certain lawmakers for Villagran’s proposal to add Bitcoin reserves to Chile’s reserves, the Central Bank of Chile remains wary. They cite regulatory concerns as well as IMF criteria for reserve assets as possible obstacles for inclusion of this cryptocurrency asset class into reserves. Nevertheless, Villagran remains hopeful, planning more discussions with wider segments of government for 2025 in order to cement Bitcoin’s role in Chilean economic life.
Villagran remains confident about convincing the Central Bank to overcome its hesitations regarding Bitcoin, noting that Chilean law does not prohibit holding it. His efforts mirror initiatives taken in other Latin American nations like Brazil which has recently considered allocating some of its foreign reserves towards this form of virtual currency as an economic protection hedge.
This article concludes by noting the current trading value of Bitcoin, underscoring both its growing appeal and potential financial impact of legislative moves on this sector.
