Strategic Bitcoin reserve proposed by Chilean lawmakers

Several Chilean lawmakers are currently pushing for legislation that would create a Strategic Bitcoin Reserve (SBR), according to details shared by state mining lobbyist Andrés Villagran. Revealing his progress via X, Villagran explained that he was meeting with several officials to defend the potential economic benefits of Bitcoin.

Chile’s path to Bitcoin adoption

“In 2023, I embarked on an amazing journey with Bitcoin!” “I held meetings with more than 20 parliamentarians and several ministers to explain the benefits of Bitcoin for Chile and its people,” Villagran wrote, adding that his communication intensified further in mid-2024.

Villagran’s efforts have been supported by Dennis Porter, CEO of US non-profit Satoshi Act Fund, and Simon Collins, CEO of Stackr – both of whom have prior experience introducing legislation and promoting sustainable Bitcoin mining practices. According to Villagran:

“At the beginning of 2024, I began meetings with several representatives from this long, narrow strip of land that is Chile. […] In mid-2024, I met Simon Collins and Dennis Porter, and established a collaboration with them as they had walked the same path before (Dennis with the Satoshi Act Fund had already introduced 30 banknotes). So I invited them to Chile to present empirical information supported by research papers to parliamentarians and the Chilean government.

During November 2024, the team presented the Bitcoin Strategic Reserve concept to government representatives, including members of the administration of President Gabriel Buric, Representative Andres Giordano (Amplio Front), and Representative Juan Santana (Socialist Party). Their discussions touched on precedents set by similar proposals in Pennsylvania, Ohioand Texas Within the United States, which was led by Porter.

In addition, MP Gael Yeomans – allied with the Social Convergence Party, part of the ruling Frente Amplio left-wing coalition – proposed the formation of a “Bitcoin Bench”, or Bancada Bitcoin, charged with conducting in-depth research, examining international legislation, and drafting the relevant bills.

Villagran praised the initiative, saying: “Rep. Gael Yeomans proposed the creation of a Bitcoin seat (Bancada Bitcoin)… Personally, I think it would be ideal for this Bitcoin seat to be from left to right.”

Despite this momentum, the push for a strategic Bitcoin reserve may face headwinds from Chile’s central bank, which has historically expressed skepticism about Bitcoin as a national reserve asset. In December of the previous year, the central bank rejected the idea, citing regulatory obstacles International Monetary Fund standards For reserve assets, they are security, liquidity and reliability.

Despite the central bank’s reservations, Villagran remains optimistic, noting that additional talks with the Ministry of Finance, as well as senators and representatives from across the political spectrum, are scheduled to take place in 2025:

“I want to make it clear that in 2025, we will be holding meetings with the Ministry of Finance to specifically introduce the SBR, as well as with all senators and representatives, so that it can be one of the first countries where Bitcoin is an essential part of the country’s economy.”

It is worth noting that during the live broadcast with Porter, Villagran highlighted that Chilean law allows the central bank to hold Bitcoin. He also indicated plans to participate in discussions with the bank later this year.

If the Chilean proposal gains more attention, it will become the second country in Latin America to explore such a measure recently. In November of last year, Brazilian legislators It presented a plan to allocate 5% of Brazil’s foreign reserves in Bitcoin, with the aim of protecting against economic uncertainty.

At press time, Bitcoin was trading at $99,260.

Featured image created with DALL.E, a chart from TradingView.com