The Push for a Strategic Bitcoin Reserve in Chile
In recent developments, a group of Chilean lawmakers is advocating for the establishment of a Strategic Bitcoin Reserve (SBR). This initiative, championed by Andrés Villagrán, a national mining lobbyist, has been gaining traction as he reveals his progress on social media. Villagrán has been actively engaging with numerous officials to highlight the economic potential that Bitcoin could offer to Chile.
Chile’s Journey Toward Bitcoin Integration
Villagrán embarked on an enlightening journey with Bitcoin in 2023. He has held conversations with over 20 parliamentarians and several ministers, illustrating Bitcoin’s benefits for Chile and its citizens. His advocacy gained momentum in mid-2024, as he intensified his efforts to promote Bitcoin as a viable economic asset.
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Support from International Experts
Villagrán’s mission has received backing from key figures in the cryptocurrency sector. Dennis Porter, the CEO of the US nonprofit Satoshi Act Fund, and Simon Collins, the CEO of Stackr, have both lent their expertise to this cause. With a history of introducing legislation and advocating for sustainable Bitcoin mining practices, they have been instrumental in supporting Villagrán’s initiatives.
At the beginning of 2024, Villagrán commenced meetings with several deputies from Chile. By mid-2024, he had established a collaboration with Porter and Collins, leveraging their experience in similar legislative efforts across the United States. They were invited to Chile to present data-supported insights to parliamentarians and government officials.
Presenting the Strategic Bitcoin Reserve Concept
In November 2024, the team introduced the idea of a Strategic Bitcoin Reserve to Chilean government representatives. These discussions involved members of President Gabriel Boric’s administration, Deputy Andrés Giordano of Frente Amplio, and Deputy Juan Santana from the Socialist Party. Drawing parallels with similar initiatives in Pennsylvania, Ohio, and Texas in the United States, led by Porter, they made a compelling case for the SBR.
Deputy Gael Yeomans, representing the Social Convergence party within the ruling Frente Amplio coalition, further advanced the cause by proposing the formation of a “Bitcoin Bench” (Bancada Bitcoin). This group would be responsible for conducting thorough research, analyzing international legislation, and drafting pertinent bills.
Villagrán lauded this proposal, stating, “Deputy Gael Yeomans proposed creating a Bitcoin Bench. Personally, I believe it would be ideal for this Bitcoin Bench to encompass the full political spectrum.”
Challenges and Future Prospects
Despite the growing enthusiasm, the proposal for a Strategic Bitcoin Reserve may encounter resistance from the Central Bank of Chile. Historically, the central bank has expressed reservations about using Bitcoin as a national reserve asset. In December of the previous year, they dismissed the idea, citing regulatory challenges and the IMF’s standards for reserve assets, which emphasize security, liquidity, and reliability.
Nevertheless, Villagrán remains optimistic. Plans are underway for further discussions with the Ministry of Finance, as well as senators and deputies from various political backgrounds, in 2025. Villagrán emphasized, “In 2025, we will engage with the Ministry of Finance to present the SBR explicitly, along with ALL Senators and Deputies, aiming to make Chile a pioneer in integrating Bitcoin into its economy.”
Notably, during a livestream with Porter, Villagrán pointed out that Chilean law permits the Central Bank to hold Bitcoin, and he intends to discuss this further with the bank later this year.
If Chile’s proposal gains momentum, the country could join Brazil in exploring similar measures. In November of the previous year, Brazilian lawmakers proposed allocating 5% of Brazil’s foreign reserves to Bitcoin, seeking to protect against economic volatility.
At the time of writing, Bitcoin is approaching a significant milestone, with its value nearing $100,000.
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