Chile Explores Strategic Bitcoin Reserve

Chilean lawmakers are advocating for the establishment of a Strategic Bitcoin Reserve (SBR) to position Bitcoin as a key economic asset. Andrés Villagrán, a nation-state mining lobbyist, has been meeting with over 20 parliamentarians and multiple ministers to discuss Bitcoin’s potential benefits for Chile’s economy.

“In 2023, I embarked on an incredible journey with Bitcoin,” Villagrán shared via X, noting that his outreach intensified in mid-2024 with support from Dennis Porter, CEO of the Satoshi Act Fund, and Simon Collins, CEO of Stackr. Both have prior experience in promoting sustainable Bitcoin mining and legislation, having introduced over 30 related bills in the U.S.

Presenting the Strategic Bitcoin Reserve

In November 2024, Villagrán’s team presented the SBR concept to key government representatives, including members of President Gabriel Boric’s administration. Deputies Andrés Giordano (Frente Amplio) and Juan Santana (Socialist Party) were among those engaged in discussions that highlighted Bitcoin’s economic potential and drew parallels to similar proposals in Pennsylvania, Ohio, and Texas.

Deputy Gael Yeomans (Social Convergence party) proposed creating a “Bitcoin Bench” (Bancada Bitcoin) to conduct research, analyze international legislation, and draft bills. Villagrán praised the initiative, emphasizing its potential to unite lawmakers across the political spectrum.

Challenges from the Central Bank

Despite the growing political momentum, the Central Bank of Chile remains a significant hurdle. In December 2024, the bank dismissed Bitcoin’s suitability as a national reserve asset, citing concerns over security, liquidity, and adherence to IMF standards.

Villagrán remains undeterred, emphasizing that Chilean law permits the Central Bank to hold Bitcoin. He plans to meet with the Ministry of Finance and engage senators and deputies throughout 2025 to further promote the SBR.

Regional Context: Latin America’s Bitcoin Momentum

If successful, Chile would join Brazil and El Salvador in exploring Bitcoin’s role in national reserves. In November 2024, Brazilian lawmakers proposed allocating 5% of Brazil’s foreign reserves into Bitcoin to hedge against economic uncertainties. Meanwhile, El Salvador continues to lead the way with over 6,000 BTC in reserves under President Nayib Bukele.

The Road Ahead

As discussions progress, Villagrán envisions a future where Bitcoin becomes an essential part of Chile’s economy. He stated:

“In 2025, we will have meetings with the Ministry of Finance and all Senators and Deputies to present the SBR. Chile can become one of the first countries where Bitcoin is a cornerstone of the economy.”

With Bitcoin trading at $99,260, the proposal highlights the growing global recognition of cryptocurrency as a strategic financial asset.