Chile Lawmaker Push Harder for A Strategic Bitcoin Reserve After First Failed Attempt

Chile, a country not particularly known for its cryptocurrency adoption, is preparing to become more bitcoin-friendly in 2025. Gael Yeomans, a Chilean deputy, has proposed creating a bitcoin bench in the Chilean Congress, a group focused on promoting BTC research and introducing bitcoin and crypto regulations.

According to reports from Andrés Villagrán, many Chilean lawmakers are currently pushing for legislation that would establish a Strategic Bitcoin Reserve (SBR). Revealing his progress via X(twitter), Villagrán explained that met with numerous officials to advocate for BTC’s potential economic benefits

The SBR proponent set up the Bitcoin bench group with the help of Satoshi Action Fund’s CEO Dennis Porter. The group presented the idea of a strategic BTC reserve to some deputies in 2024 and prompted the idea of implementing it in the country.

Chile would be the second country in Latam to introduce a strategic bitcoin stockpile proposal. In November, Brazilian lawmakers proposed to allocate 5% of the country’s foreign reserves such stockpile to safeguard the country against economic uncertainties.

The Central Bank of Chile Raises Objections

Chilean authorities are debating the possibility of having BTC reserve. As the rages, local press probed the central bank on its opinion to assess the possibility of the country embracing such store of value.

The Central Bank of Chile(CBC) outright denied the possibility of adding bitcoin or any cryptocurrency as part of its assets, stating that these did not comply with the requirements issued by organizations like the International Monetary Fund (IMF) to become foreign reserve assets.

The CBC stated that international reserves must maintain “economic and financial stability before external shocks and a changing monetary policy.” Consequently, these assets must comply with IMF standards in terms of security, liquidity, and quality.

The apex bank added that neither bitcoin nor other cryptocurrencies fulfill the criteria. It also stated legal grounds to block the inclusion of BTC or the enactment of a strategic reserve.

Moreover,the charter of the Central Bank of Chile establishes narrow criteria for assets that can be included in its books. The law limits these assets to “gold, securities, negotiable instruments, instruments issued or guaranteed by foreign states, central banks or international financial institutions.The bank concluded by stating that it was not in its plans to include an asset switch with such volatility and uncertainty.